A cross-country comparison of corporate governance and firm performance: Do financial structure and the legal system matter?

Anderson, Annemarie; Gupta, Parveen P.

doi:10.1016/j.jcae.2009.06.002

Cited by 90 publications

(69 citation statements)

References 44 publications

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“…An underlying variable is a marketrelated characteristic of the asset or liability that leads to an increase in value changes (Gastineau, Smith, and Todd, 2001). They can be equity shares, stocks, bonds, debentures, treasury bills, foreign currencies, interest rates, commodity prices, or different market indices, such as the stock market index or the consumer price index (Anderson & Gupta, 2009). In this article, we focused on total derivatives, and the most common and widely practiced types of nonfinancial firms, i.e., foreign currency (Aretz & Bartram, 2010).…”

Section: Notesmentioning

confidence: 99%

Policy uncertainty, derivatives use, and firm-level FDI

2017

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We explore the link between uncertainty in economic policy, firm-level FDI, and firm hedging behavior -building upon a newspaper-based index of economic policy uncertainty (EPU). We find that the relative difference in EPU between home and host country has a significant relationship with FDI. Firms increase their FDI level in countries, which have a low level of EPU relative to their home country. In addition, firms use derivatives more intensively in response to an increase in EPU. Interestingly, the link between EPU and corporate derivatives use varies according to the type of firm. Domestic MNCs make the most effective use of derivatives to hedge against EPU exposure. Journal of International Business Studies (2018) 49, 96-126.

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Section: Notesmentioning

confidence: 99%

Policy uncertainty, derivatives use, and firm-level FDI

2017

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“…In support, Aslan and Kumar (2012) argue that national governance quality has strong effects on the agency-principal conflicts at firm-level. In other words, firm performance is driven not only by industry conditions, corporate governance mechanisms and other firm-specific characteristics, but also by the governance quality of the country in which firms are embedded (Anderson & Gupta, 2009;Ngobo & Fouda, 2012). For example, La Porta et al (1999) and Love (2011) document that corporate governance mechanisms have greater influences on firm performance in countries with weaker legal protection.…”

Section: Institutional Theory and The Role Of National Governance Quamentioning

confidence: 99%

Ownership concentration and corporate performance from a dynamic perspective: Does national governance quality matter?

Nguyen

Locke

Reddy

2015

International Review of Financial Analysis

211

178

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“…Thus, the Corporate Governance Quotient measures the overall effectiveness of corporate governance structures employed by a firm. The Corporate Governance Quotient is widely used in practice and has been used as a proxy for corporate governance in several prior studies (e.g., Agarwal, Chomsisengphet, Liu, & Rhee, 2007;Anderson & Gupta, 2009;Bauer, Eichholtz, & Kok, 2010;Brown & Caylor, 2009;Cornelius, 2005;Epps & Cereola, 2008).…”

Section: Measuring Corporate Governance Effectivenessmentioning

confidence: 99%

Corporate Governance and Accounting Conservatism: Evidence from the Banking Industry

Leventis¹,

Dimitropoulos²,

Owusu‐Ansah³

2013

Corporate Governance

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Manuscript Type Empirical Research Question/Issue In this paper, we empirically investigate whether US listed commercial banks with effective corporate governance structures engage in higher levels of conservative financial accounting and reporting. Research Findings/Insights Using both market‐ and accrual‐based measures of conservatism and both composite and disaggregated governance indices, we document convincing evidence that well‐governed banks engage in significantly higher levels of conditional conservatism in their financial reporting practices. For example, we find that banks with effective governance structures, particularly those with effective board and audit governance structures, recognize loan loss provisions that are larger relative to changes in nonperforming loans compared to their counterparts with ineffective governance structures. Theoretical/Academic Implications We contribute to the extant literature on the relationship between corporate governance and quality of accounting information by providing evidence that banks with effective governance structures practice higher levels of accounting conservatism. Practitioner/Policy Implications The findings of this study would be useful to US bank regulators/supervisors in improving the existing regulatory framework by focusing on accounting conservatism as a complement to corporate governance in mitigating the opaqueness and intense information asymmetry that plague banks.

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A cross-country comparison of corporate governance and firm performance: Do financial structure and the legal system matter?

Cited by 90 publications

References 44 publications

Policy uncertainty, derivatives use, and firm-level FDI

Policy uncertainty, derivatives use, and firm-level FDI

Ownership concentration and corporate performance from a dynamic perspective: Does national governance quality matter?

Corporate Governance and Accounting Conservatism: Evidence from the Banking Industry

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