Value Relevance of Tobin’s Q and Corporate Governance for the Taiwanese Tourism Industry

Wang, Mao-Chang

doi:10.1007/s10551-014-2339-9

Cited by 35 publications

(40 citation statements)

References 32 publications

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“…The obtained results document a positive impact of corporate governance on business performances, measured by Tobin's Q. Therefore, the obtained results are in accordance to other previous studies in literature, reflecting a positive correlation between the two variables (Black et al 2005(Black et al , 2006Ficici, Aybar 2012;Fallatah, Dickins 2012;Wang 2014).…”

Section: Constructing a Model For Global Business Performancesupporting

confidence: 90%

Corporate Governance and Business Performance: Evidence for the Romanian Economy

Achim

Borlea

Mare

2015

Journal of Business Economics and Management

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Abstract. Our finding contributes towards the understanding of movements regarding the adoption of corporate governance practice in emerging countries such as Romania and its impact on business performances of a company. We have developed two econometric models to assess the business performances of the companies listed on Bucharest Stock Exchange, in order to point out the impact of corporate governance on business performances. Our results are inconsistent for the period 2001-2011, but if we consider only 2011, the results document a positive correlation between corporate governance quality and market value of companies, such it is reflected by Tobin's Q. Therefore, our results contribute to the studies relating corporate governance and business performances, as it confirms a positive relationship between the two variables which appears once the Romanian emerging economy has began to adopt the best corporate governance practices. Firstly, our research has important implications for managers in order to know that the adoption of the best corporate governance practices could contribute to the financial success of the firm. Secondly, the results are useful for any investor who needs to consider the quality of corporate governance as a good predictor for the best rate of return of theirs investments. Moreover, our findings have also implications on policy-makers and regulatory authorities in European developing countries and offer them a barometer of adopting the best corporate governance practices in European space.

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Section: Constructing a Model For Global Business Performancesupporting

confidence: 90%

Corporate Governance and Business Performance: Evidence for the Romanian Economy

Achim

Borlea

Mare

2015

Journal of Business Economics and Management

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“…Thus, firms with effective CG mechanisms were likely to focus their efforts on activities that could add value to the organization through IC by designing a healthy and safe workplace, establishing training and education programs, hiring experts in the field, improving processes and systems, enhancing diversity and equal opportunity, and developing trustworthy relationships with all stakeholders. Consistent with the aforementioned assumptions, Wang [30] founds that IC was positively related to firm valuation and that CG had a moderating effect by influencing the positive relationship between IC and firm valuation. In a similar vein, by focusing on internal CG mechanisms to protect outside investors against expropriation by insiders, Appuhami and Bhuyan [31] found that firms might experience a significant association between IC efficiency and some board characteristics such as CEO duality and board composition.…”

Section: The Link Between Cg As a Csr Pillar And Icsupporting

confidence: 55%

“…Further, CG mechanisms are strictly concerned with honesty and transparency [34]. The latter are values that can facilitate the development of trust as a complementary governance mechanism of social exchanges [30]. In this sense, reliable CG should prevent opportunistic behaviors among a business and its stakeholders, thus aiding the accruing of SC.…”

Section: The Link Between Cg As a Csr Pillar And Icmentioning

confidence: 99%

“…Further, the previous empirical studies on the links between CSR and IC and between CG and IC show several methodological limitations. An overlooked aspect is that most of the research is geographically limited, and the empirical tests are performed on small samples with reference to a specific industry (e.g., References [15,[26][27][28][29][30][31][32][33]). Moreover, some studies adopt univariate tests (e.g., Reference [29]) or adopt cross-sectional data (e.g., Reference [28]) that impede causality examination, whereas other analyses minimize the reverse causality effects (e.g., Reference [15]).…”

Section: Introductionmentioning

confidence: 99%

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Do Corporate Social Responsibility and Corporate Governance Influence Intellectual Capital Efficiency?

et al. 2019

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Using a large sample of public firms in 51 countries during the period from 2010 to 2015 and a two-stage least squares (2SLS) regression with an instrumental variable (IV), this study investigates how corporate social responsibility (CSR) and corporate governance (CG) mechanisms interact to influence a firm's intellectual capital (IC) efficiency. The empirical results reveal that CSR engagement and CG structures influence the firm efficiency in managing IC. This study contributes to managerial practice by demonstrating the causal effect of CSR on value-added intellectual capital (VAIC) measures and the positive impact of CG on both CSR engagement and the efficiency with which firms manage their IC. Furthermore, the current study provides an additional understanding of the relationship among CSR engagement, CG practices, and the determining factors of IC efficiency within a comprehensive framework.Thirdly, by capturing the points of convergence stemming from a stakeholder approach to CSR engagement, CG mechanisms, and IC development, the current paper aims to respond to Dumay's [25] call for a shift of the research focus on IC development from an accounting to a management perspective. Indeed, for Dumay, the CSR engagement represents an important opportunity to expand the research agenda on the management of IC, instead of concentrating on synergies among IC reporting and CSR disclosure.Furthermore, relative to prior literature, the current study aims to advance the methodological design for empirical evidence on the link between CSR, CG, and IC. In particular, we collected longitudinal panel data on a large sample of international public firms for which we have information for the 2010-2015 period. Additionally, our estimates employ the instrumental variable (IV) approach for the treatment of reverse causality. Finally, the econometric models of this paper adopt data on CSR engagement drawing from the Asset4 dataset provided by Reuters. As noted in the previous studies (e.g., Reference [38]), Asset4 generates transparent, auditable, and comparable information for the evaluation of corporate social performance.With the awareness that measuring IC performance is still an open question [18], we estimate the financial contribution of IC performance through value-added intellectual capital (VAIC) by Pulic [39], a model that has been widely used as the primary measure of IC (e.g., Reference [31,[40][41][42]). Consistent with Iazzolino and Laise [43] and relative to the indicators that measure value creation from shareholders' perspective, VAIC measures value creation from the stakeholder perspective and clearly accounts for IC.Therefore, to achieve the objectives of the current study, the remainder of this paper is organized as follows. Section 2 presents the conceptual framework and the hypotheses. Section 3 explains the design of the empirical study. Section 4 summarizes the results. Section 5 provides the theoretical conclusions and managerial implications Finally, Section 6 includes the study's limitations and sugg...

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“…Other studies have examined the impact of various contextual factors on the value relevance of accounting information in various countries such as accounting practices in six Asian countries [23], investor protection in many countries [24], macro factors and bank-level factors in many countries [25], premium/discount firms in the United States [26], intellectual capital or intangible assets in Taiwan [27], improvements in working capital efficiency in Malaysia [3], financial crisis in Turkey [4], and adoption of international financial reporting standards (IFRS) in Norway [28], in Europe [29], in China [30], and in Indonesia [8].…”

Section: Value Relevance Of Financial Statementsmentioning

confidence: 99%

Sustainability Reporting and Value Relevance of Financial Statements

et al. 2018

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This study examines whether information about the winners of the Sustainability Reporting Award (SRA) contributes to the usefulness of the information in financial statements. This study used a sample consisting of 110 winners of SRA (SRA firms) and 110 companies that did not receive SRA (non-SRA firms) from 2008 to 2016. The study found that earnings per share (EPS), earnings per share change (EPSC), and book value per share (BVPS) are value-relevant information. Results of comparison between SRA firms and non-SRA firms show that the positive association between EPS and stock price (P) and the positive association of EPS with stock returns (R) for SRA firms are higher than that for the non-SRA firms. In addition, findings of this study indicate that EPSC is positively associated with R when EPSC and R are measured by Indonesian rupiah (IDR) instead of by percentage, and the positive association between EPSC and R for the SRA firms is higher than that for the non-SRA firms. Thus, the results are sensitive to measures of the variables. However, this study found that value relevance of BVPS for SRA firms is lower than for non-SRA firms. Implication of this study is that information about the winners of SRA contributes to the usefulness of financial statements, especially the information of EPS and EPSC.

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Value Relevance of Tobin’s Q and Corporate Governance for the Taiwanese Tourism Industry

Cited by 35 publications

References 32 publications

Corporate Governance and Business Performance: Evidence for the Romanian Economy

Corporate Governance and Business Performance: Evidence for the Romanian Economy

Do Corporate Social Responsibility and Corporate Governance Influence Intellectual Capital Efficiency?

Sustainability Reporting and Value Relevance of Financial Statements

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