IDEAS home Printed from https://ideas.repec.org/a/gam/jijfss/v13y2025i3p123-d1693646.html
   My bibliography  Save this article

Financial Performance and Corporate Governance on Firm Value: Evidence from Spain

Author

Listed:
  • Leslie Rodríguez Valencia

    (Department of Business and Business Analytics, Universidad Europea de Madrid, C. Tajo, s/n, 28670 Madrid, Spain)

Abstract

This paper investigates the financial performance and corporate governance variables that influence firm valuation. This study analyzes 91 Spanish small and medium-sized enterprises (SMEs) listed on BME Growth using a fixed effects panel data model based on 5760 observations. This study covered a period of five years from 2015 to 2019. This study concludes that profitability, capital structure and ownership concentration are key value drivers, while liquidity and efficiency are not statistically significant and require further contextual examination. Regarding corporate governance, the presence of controlling shareholders was found to have a significant positive impact on firm value, reinforcing the importance of ownership concentration in reducing agency conflicts and enhancing oversight. Other governance frameworks, such as firm structure and managerial concentration, did not exhibit significant effects.

Suggested Citation

  • Leslie Rodríguez Valencia, 2025. "Financial Performance and Corporate Governance on Firm Value: Evidence from Spain," IJFS, MDPI, vol. 13(3), pages 1-24, July.
    • Handle: RePEc:gam:jijfss:v:13:y:2025:i:3:p:123-:d:1693646
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7072/13/3/123/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7072/13/3/123/
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijfss:v:13:y:2025:i:3:p:123-:d:1693646. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.