Corporate governance mechanisms and the performance of small-cap firms in Canada

Switzer, Lorne N.; Kelly, Catherine

doi:10.1504/ijbge.2006.011160

Cited by 27 publications

(43 citation statements)

References 98 publications

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“…This model has previously been used by several research works, especially for the purpose of validating the causal effect between governance and performance, among which one can cite Bhagat and Bolton (2008) along with Switzer and Kelly (2006).…”

Section: Methodsmentioning

confidence: 99%

“…To note, a simultaneous equations approach serves to take into account both of the endogeneity and causal effect. Switzer and Kelly (2006) apply simultaneous equations system to explain the interaction of four governance mechanisms, namely: board independence, managerial ownership as well as indebtedness level, and they found a significant impact of some governance mechanisms on performance. Given the corporate governance concept and importance of the transparency notion, verification of causal relationship is motivating.…”

Section: Corporate Governance Mechanisms and Information Transparencymentioning

confidence: 99%

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Corporate Governance and Information Transparency: A Simultaneous Equations Approach

Kachouri

Jarboui

2017

Asian Economic and Financial Review

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Article HistoryThe purpose of this paper is to review the relationship between corporate governance mechanisms and information transparency. In this paper, we aim to answer the important questions of whether corporate governance affects financial information transparency, if so, whether transparency reporting can affects corporate governance mechanisms and the interaction of internal and external governance mechanisms. This study uses a sample of 28 non-financial listed Tunisian companies and covers an eight-year period from 2006 to 2013. To test the hypotheses of this research, a simultaneous equation system model was applied. The results obtained shows that, for the Tunisians companies, financial transparency have a significant effect on board size and on audit quality. The current study also provides evidence that corporate governance mechanisms are interdependent. The findings may be of interest to those academic researchers, practitioners and regulators who are interested in discovering corporate governance practices in Tunisian context. This paper extends the existing literature, in the Tunisian context in particular, by examining the causal relationship between corporate governance and information transparency.

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Section: Methodsmentioning

confidence: 99%

Section: Corporate Governance Mechanisms and Information Transparencymentioning

confidence: 99%

Corporate Governance and Information Transparency: A Simultaneous Equations Approach

Kachouri

Jarboui

2017

Asian Economic and Financial Review

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“…The larger board of directors, the more experienced and knowledgeable people will be available which will lead to more careful learning, decision making process and ultimately better firm performance. Larger board of directors is harmful to firms' performance (Switzer & Tang, 2009). Arora (2012) examined the impact of board directors' size on the performance of 150 pharmaceutical companies for the period from 2001 to 2010, the study found that board directors' size has a positive impact on firms' performance.…”

Section: Board Of Directors' Size and Firms' Performancementioning

confidence: 99%

“…It is also called outside director (Muniandy & Hillier, 2015). Many studies were conducted to investigate the association between board independence and firms' performance; Switzer & Tang (2009) investigated the impact of degree of board independence on the performance of 245 Small-Cap firms U.S for the period from 2000 to 2004; it was found that degree of board independence positively correlates with firms' performance. Citation & Chatterjee (2011) aimed to explore the relationship between board directors' independence and Indian firms, the sample covered public, private, undertaking, standalone firms, and subsidiaries foreign firms.…”

Section: Board Independence and Firms' Performancementioning

confidence: 99%

The impact of corporate governance practices on firm’s performance: An empirical evidence from Indian tourism sector

Yameen¹,

Farhan²,

Tabash³

2019

Journal of International Studies

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The growth of Indian companies in recent years has led to a change in the nature of the economy which attracted outsider investors from developed countries who demanded robust corporate governance practices from Indian companies which made regulators and competitors gave a great effort to restructure corporate governance. Therefore, this paper aims to investigate the effect of corporate governance practices on firms' performance, with a special reference to the Indian tourism sector. The study uses a panel dataset of 39 hotels listed on Bombay Stock Exchange (BSE) for the period from 2013/2014 to 2015/2016. The ordinary least square regression model is run for estimating the results. Findings show that board directors' size and audit committee's size negatively impact the performance of Indian hotels, while board directors' composition and diligence, the audit committee's composition and diligence, and foreign ownership positively affect the performance of Indian hotels measured by accounting proxies. Results also reveal that board directors' size, audit committee's size, and foreign ownership positively impact the Indian hotels' performance measured by marketing proxies, whereas board directors' composition; board directors' diligence; audit committee's composition; and audit committee's diligence have a negative impact on the performance of Indian hotels.

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“…Hence, we also control for the CEO's previous stock ownership in our performance equations in accord with the finding of Jensen and Meckling (1976) that managers' incentives to work harder and boost performance increase as their ownership in the firm rises. Finally, we include leverage and growth in our performance equations in line with Mehran (1995) and Switzer and Tang (2009).…”

Section: Return Equationmentioning

confidence: 99%

Does risk matter in CEO compensation contracting? Evidence from US restaurant industry

Özdemir

Kizildag

Upneja

2013

International Journal of Hospitality Management

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a b s t r a c tThe structure of compensation packages of Chief Executive Officers (CEOs) has been a significant research interest for researchers across various disciplines. In this paper, we examine a unique relationship between CEO compensation and risk (systematic risk) in the US restaurant industry. Our research question stems from the assumption that CEOs must be rewarded with a higher incentive-based compensation in high-risk profile restaurant companies in order to motivate them to perform in their full potential for mutual benefits of the CEO and shareowners. Furthermore, we investigate whether firm risk moderates the relationship between firm performance and CEO total compensation controlling for the firm size and CEO ownership. We draw our sample firms from the US restaurant industry. Findings of our study suggest that firm risk induces a higher proportion of incentive-based compensation for restaurant companies' CEOs, and firm risk does not seem to moderate the relationship between pay and performance in the restaurant industry.

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Corporate governance mechanisms and the performance of small-cap firms in Canada

Cited by 27 publications

References 98 publications

Corporate Governance and Information Transparency: A Simultaneous Equations Approach

Corporate Governance and Information Transparency: A Simultaneous Equations Approach

The impact of corporate governance practices on firm’s performance: An empirical evidence from Indian tourism sector

Does risk matter in CEO compensation contracting? Evidence from US restaurant industry

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