Size Really Matters: Further Evidence on the Negative Relationship Between Board Size and Firm Value

Mak, Yuen Teen; Kusnadi, Yuanto

doi:10.2139/ssrn.303505

Cited by 129 publications

(134 citation statements)

References 46 publications

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“…These anti-larger board views were empirically supported by a number of prior studies mainly in the corporate performance literature (e.g. Mak and Kusnadi, 2005).…”

Section: Icd and Corporate Governancesupporting

confidence: 56%

“…Many studies were conducted to investigate the impact of board size on various organizational multitudes such as strategic management (Goodstein et al, 1994); corporate performance (Mak and Kusnadi, 2005;Coles et al, 2008); and ICDs (Cerbioni and Parbonetti, 2007;Abeysekera, 2010;Hidalgo et al, 2011;Abdul Rashid et al, 2012). The extant literature documents both arguments for (e.g.…”

Section: Icd and Corporate Governancementioning

confidence: 99%

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A longitudinal examination of intellectual capital disclosures and corporate governance attributes in Malaysia

Haji

Ghazali

2013

Asian Review of Accounting

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this study is to examine the relationship between intellectual capital disclosure (ICD) and corporate governance attributes following the revised code on corporate governance in Malaysia in 2007. Design/methodology/approach -The sample of the present study was drawn from top companies listed on Bursa Malaysia based on their market capitalization for the years 2008, 2009 and 2010. A self-constructed disclosure index was used to assess the extent and quality of ICDs. The panel data regression analysis was employed to examine the relationship between ICDs and corporate governance. Findings -The results revealed that all corporate governance attributes namely board size, independent directors, board effectiveness and position of the chairman (except family members on the board) were significant in explaining the extent and quality of ICDs in the expected direction. Director ownership was found to be consistent in negatively relating to both the extent and quality of ICDs. Government ownership was marginally significant in determining the extent of ICDs. Practical implications -The findings suggest that the revised corporate governance code has a positive impact on ICD at least in the case of large Malaysian listed companies. This implies that regulatory efforts in enhancing corporate governance in Malaysia is starting to prove fruitful in encouraging companies to be involved in more IC investment and hence disclosure. Originality/value -This paper is one of the few studies which investigate the influence of corporate governance on ICDs longitudinally in a developing country following revision to the corporate governance code in Malaysia in 2007.

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“…These anti-larger board views were empirically supported by a number of prior studies mainly in the corporate performance literature (e.g. Mak and Kusnadi, 2005).…”

Section: Icd and Corporate Governancesupporting

confidence: 56%

Section: Icd and Corporate Governancementioning

confidence: 99%

A longitudinal examination of intellectual capital disclosures and corporate governance attributes in Malaysia

Haji

Ghazali

2013

Asian Review of Accounting

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“…Our conjecture for the reason why these firms exhibit different relationship curves is perhaps the factor of size synergy. The size of top management team (TMT) has an impact on organizational decisions (Haleblian and Finkelstein, 1993;Mak and Kusnadi, 2005). Because operational complexity varies with size, the decision-making strategy also varies; consequently, the impact on firm performance also differs.…”

Section: Discussionmentioning

confidence: 99%

Non-linear relationship between gender diversity in the partnership and profit performance in accounting firms

Hsu

Kuo

Chang

2016

PAR

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose: This study aims to examine how gender diversity within the CPA partnership team impacts the firm's profit performance.Design/Methodology/approach: We employ the 2SLS method in analyzing the gender-diversity-performance relationship using the pooled sample obtained from the National Survey Reports on Taiwan CPA firms between 1992 and 2008. Findings:We observe a non-linear relationship between gender diversity at the partner level and profit performance. The relationship curves vary according to firm size. After identifying the point of inflexion for these curves, our findings indicate that the average gender diversity is below the inflexion point for large CPA firms, but exceeds the inflexion point for medium size firms.Practical implications: According to the critical mass theory, increasing gender diversity within the partnership team can have a positive influence on the value of the firm. Hence, we argue that for large CPA firms in Taiwan, the proportion of female partners leaves room for improvement. If the average number of female partners could be increased by 0.95 persons, the critical mass would be attained. Originality/Values:The study provides the empirical evidence that increasing a CPA firm's proportion of female partners positively impacts the firm's profit performance. Our findings serve a practical value as reference source for any further studies.

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“…MAK and KUSANDI (2002) find that firm size positively affects firm value. This is done to ensure that the relations found between firm value metrics and corporate governance mechanisms are not due to omitted variables.…”

Section: Control Variablesmentioning

confidence: 90%

“…In contrast, the entrenchment hypothesis suggests that higher managerial ownership reduces the offer price-to-book and/or the initial return. Consistently, MAK and KUSANDI (2002) examine the impact of corporate governance mechanisms of Singapore and Malaysian firms on their Tobin's Q. SHLEIFER and VISHNY (1986) argue that blockholder ownership increases efficiency as holders of large blocks have more incentive to effectively monitor managers.…”

Section: Hypothesis 5: a Positive (Or Negative) Relationship Between mentioning

confidence: 99%

Corporate governance and firm value for small and medium sized IPOs

Chahine

2004

Fin Mkts Portfolio Mgmt

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Size Really Matters: Further Evidence on the Negative Relationship Between Board Size and Firm Value

Cited by 129 publications

References 46 publications

A longitudinal examination of intellectual capital disclosures and corporate governance attributes in Malaysia

A longitudinal examination of intellectual capital disclosures and corporate governance attributes in Malaysia

Non-linear relationship between gender diversity in the partnership and profit performance in accounting firms

Corporate governance and firm value for small and medium sized IPOs

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