Corporate performance, managerial ownership and endogeneity: A simultaneous equations analysis for the Athens stock exchange

Drakos, Anastassios A.; Bekiris, Fivos V.

doi:10.1016/j.ribaf.2009.01.002

Cited by 58 publications

(59 citation statements)

References 36 publications

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“…These results differ, however, from those obtained by Margaritis and Psillaki (2010) and Drakos and Bekiris (2010), whose results support the convergence of interests hypothesis, whereby the propensity of the director to comply with maximizing company value is directly proportional to ownership.…”

Section: Ii) Managerial Ownership Versus Operational Performancecontrasting

confidence: 99%

Banking Relationships, Managerial Ownership and Operational Performance: A Simultaneous Equations Approach in the Context of SMEs

Augusto¹,

Pinto²

2014

International Journal of Financial Research

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This paper provides new evidence for the relationship between the nature of banking relationships, managerial ownership and operational performance in supporting reciprocal effects between these variables in the context of small and medium enterprises (SMEs). A simultaneous equations model was applied to a sample of 4,163 Portuguese SMEs and to cross-section data. Evidence was found that these attributes provide simultaneous relations among themselves. In particular, on the one hand, our results support a negative effect of the number of banks with which the company works and managerial ownership on operational performance. On the other hand, the number of banks with which the company maintains a relationship is positively conditioned by operational performance and negatively by managerial ownership. In turn, managerial ownership is negatively conditioned by operational performance and the nature of the banking relationship.

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Section: Ii) Managerial Ownership Versus Operational Performancecontrasting

confidence: 99%

Banking Relationships, Managerial Ownership and Operational Performance: A Simultaneous Equations Approach in the Context of SMEs

Augusto¹,

Pinto²

2014

International Journal of Financial Research

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“…Nevertheless, the non significant result indicating that there is no impact of independent commissioners' existence on firm performance. This result is consistent with Agrawal andKnoeber (1996), Yermack (1996), Klein (1998), Bhagat and Black (2002) and Drakos and Bekiris (2010). Every firm has specific procedures and requirements in the appointment/selection of independent commisioners that should comply to the corporate governance guidelines promulgated by the government.…”

Section: Research In Applied Economicssupporting

confidence: 84%

“…The result is contradictory with the hypothesis which stated that independent directors has a negative impact on firm performance. This result is also not consistent with Agrawal and Knoeber (1996), Yermack (1996), Klein (1998), Bhagat and Black (2002) and Drakos and Bekiris (2010). However, the non significant result indicating that there is no impact of independent directors' existence on firm performance.…”

Section: Research In Applied Economicsmentioning

confidence: 69%

“…Carter Simkins & Simpson (2003) and Coles, Daniel & Naveen (2008) find a positive relationship between board size and firm performance, therefore this study hyphotesised that: Agrawal and Knoeber (1996), Yermack (1996), Klein (1998), Bhagat and Black (2002) and Drakos and Bekiris (2010) find a negative relationship between independent board and firm performance, therefore this study hypothesised that: 3. Independent commisioners has a negative impact on firm performance 4.…”

Section: Research In Applied Economicsmentioning

confidence: 81%

“…The results yielded in most previous studies are inconclusive since some studies yield a positive significant result Weisbach, 1991, 2003;Dalton et al, 1999;Dehaene et al, 2001;Gompers et al, 2003;Brown and Caylor, 2009;Dittmar and Mahrt-Smith, 2007;Harjoto and Hoje, 2008), and some studies yield a negative significant result (Agrawal and Knoeber, 1996;Yermack, 1996;Klein, 1998;Bhagat and Black, 2002;Drakos and Bekiris, 2010), and other study yields non significant result (Schmid and Zimmermann, 2005).…”

Section: Corporate Governance and Firm Performancementioning

confidence: 97%

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Corporate Governance, Intellectual Capital and Firm Performance

Basyith

2016

RAE

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This paper investigates the impact of corporate governance and intellectual capital on firm performance in Indonesian-listed firms. Using a balanced-panel of 120 Indonesian-listed firms, this study employs a balanced panel method, using non linier IV 2SLS and non linier IV-GMM. All variables, apart from commissioners, directors, education and capital employed efficiency exhibit a non significant impact on Tobins'Q, while all variables are statistically non significant for ROA. The findings are less conclusive than that of previous studies in developed countries. This study provides recent evidence for the corporate governance and intellectual capital in affecting firm peformance of listed-firms in Indonesian Stock Exchange. Though most listed-firms in Indonesia is owned by group or family, the appointment should be strictly complied to the regulations set, as current evidence indicates that independent commissioners and directors have no impact on firm performance, hence an awareness of good corporate governance conduct should be massively disseminated.

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Does corporate governance affect financial performance of firms? A large sample evidence from India

2020

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The study of corporate governance is gaining momentum as its compliance has been made mandatory and the number of corporate governance issues is on the rise. Global scandals in Enron, WorldCom, and so forth. along with the rising number of domestic cases of misgovernance such as Satyam, Tata v/s Mistry have further stimulated the interest of policy makers, investors, academicians and other stakeholders in India. A number of studies have investigated the relationship between corporate governance and performance but the results remain inconclusive. We examine the relationship in the Indian context on a sample of 2,552 non-financial firms. The firm performance is measured by ROA and Tobin's Q and corporate governance characteristics are measured by the strength of the board, shareholding by executives, independence of the members of the audit committee and dual positions held by CEO. The results of the panel data analysis on 15,671 firm year (2010-2019) shows that the CG factors, namely, audit committee independence, board size and CEO duality do not impact firm performance whereas managerial ownership revealed positive impact on firm performance (ROA). Audit committee independence and CEO duality have no impact whereas board size and managerial ownership revealed positive impact on firm performance (Tobin's Q).

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Corporate performance, managerial ownership and endogeneity: A simultaneous equations analysis for the Athens stock exchange

Cited by 58 publications

References 36 publications

Banking Relationships, Managerial Ownership and Operational Performance: A Simultaneous Equations Approach in the Context of SMEs

Banking Relationships, Managerial Ownership and Operational Performance: A Simultaneous Equations Approach in the Context of SMEs

Corporate Governance, Intellectual Capital and Firm Performance

Does corporate governance affect financial performance of firms? A large sample evidence from India

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