IDEAS home Printed from https://ideas.repec.org/a/taf/raaexx/v30y2023i4p1086-1103.html
   My bibliography  Save this article

The relation between the corporate governance evaluation and abnormal returns: the role of company financial performance

Author

Listed:
  • Yi-Hui Tai

Abstract

This research investigates the association between the upgrade/downgrade of rankings in corporate governance evaluation exercises and stock price reactions. Using Taiwan equities as the research setting, this study finds that firms receiving an upgraded (downgraded) ranking from corporate governance evaluation exercises do not experience significantly positive (negative) abnormal returns, but there is actually a positive (negative) correlation between such an upgrade (downgrade) after these evaluation exercises as well as abnormal returns under the condition of better company financial performance. This study contributes to the extant literature by shedding additional light on the correlation among corporate governance evaluation exercises, abnormal returns, and company financial performance.

Suggested Citation

  • Yi-Hui Tai, 2023. "The relation between the corporate governance evaluation and abnormal returns: the role of company financial performance," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 30(4), pages 1086-1103, July.
    • Handle: RePEc:taf:raaexx:v:30:y:2023:i:4:p:1086-1103
    DOI: 10.1080/16081625.2020.1828952
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/16081625.2020.1828952
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/16081625.2020.1828952?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    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:taf:raaexx:v:30:y:2023:i:4:p:1086-1103. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/raae20 .

    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.