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Corporate Governance and Shareholder Value in Listed Firms: An Empirical Analysis in Five Countries (France, Italy, Japan, UK, USA)

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  • Monda, Barbara
  • Giorgino, Mrco

Abstract

In this paper, we design a multi-dimensional index to measure the quality of Corporate Governance systems adopted by firms and use it to investigate the correlation between Corporate Governance quality and firm value. Unlike most studies that examine the relationship between only one dimension of Governance and firm value, we present a complex index (CGI) composed of 39 variables referable to four dimensions: Board, Remuneration, Shareholder Rights and Disclosure. By analysing a sample of 100 large companies listed on the main stock markets in five different countries over three years (2009-2011), we confirm the widespread hypothesis of the existence of a positive and statistically significant relationship between Corporate Governance, as measured by a subset of 12 variables, and firm value.

Suggested Citation

  • Monda, Barbara & Giorgino, Mrco, 2013. "Corporate Governance and Shareholder Value in Listed Firms: An Empirical Analysis in Five Countries (France, Italy, Japan, UK, USA)," MPRA Paper 45422, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:45422
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    References listed on IDEAS

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    Cited by:

    1. Puneeta Goel, 2018. "Implications of corporate governance on financial performance: an analytical review of governance and social reporting reforms in India," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 3(1), pages 1-21, December.
    2. Yu Jin Chang & Jae Wook Yoo, 2023. "How Does the Degree of Competition in an Industry Affect a Company’s Environmental Management and Performance?," Sustainability, MDPI, vol. 15(9), pages 1-11, May.
    3. Ines Chaabouni & Anis Jarboui, 2016. "Effect of board`s skills on stakeholder value," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 6(4), pages 84-100, April.
    4. Monica-Violeta Achim & Sorin-Nicolae Borlea & Codruţa Mare, 2016. "Corporate Governance and Business Performance: Evidence for the Romanian Economy," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(3), pages 458-474, June.
    5. Tran Thi Thanh Tu & Pham Bao Khanh & Phung Duc Quyen, 2014. "Developing Corporate Governance Index for Vietnamese Banking System," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 5(2), pages 175-188, April.

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    More about this item

    Keywords

    Corporate Governance; Corporate Governance Index; firm value;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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