Corporate Governance, Investment, and Firm Valuation in Asian Emerging Markets

We investigate the effects of corporate governance and family ownership on firm valuation through investment efficiency in Asian emerging markets. Using 3 years of time series data from the Credit Lyonnais Securities Asia corporate governance score for 10 Asian emerging markets, we find that good co...

Full description

Saved in:
Bibliographic Details
Published in:Journal of international financial management & accounting 2011-09, Vol.22 (3), p.246-273
Main Authors: Cheung, Yan-Leung, Stouraitis, Aris, Tan, Weiqiang
Format: Article
Language:English
Subjects:
Asia
Business valuation
Corporate governance
Decision making
Emerging markets
Family owned businesses
Financial accounting standards
Financial management
Firm value
Investment effectiveness
Investments
Ownership
Studies
Time series
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:We investigate the effects of corporate governance and family ownership on firm valuation through investment efficiency in Asian emerging markets. Using 3 years of time series data from the Credit Lyonnais Securities Asia corporate governance score for 10 Asian emerging markets, we find that good corporate governance leads to better or more efficient investment decisions and eventually to higher firm value. We also find that investors reward firms for improvement in corporate governance. The findings do not hold for Asian firms with a family or concentrated ownership structure. The results are not driven by changes in accounting standards in these markets.
ISSN:0954-1314
1467-646X
DOI:10.1111/j.1467-646X.2011.01051.x