Essays on Corporate Governance and Firm Performance

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dc.contributor.advisor Margaritis, D en
dc.contributor.advisor Li, M en Ramezanian Bajgiran, Nava en 2020-03-29T22:39:06Z en 2020 en
dc.identifier.uri en
dc.description.abstract Most corporate governance research focusses on prescriptive measures of governance quality (e.g., board composition, attributes) and their association with measures of firm performance but neglects the dynamic nature of governance choices that impinge on firm value. In Chapter 1, I introduce a top-down approach for evaluating board effectiveness in a dynamic context focusing on the empirical outcomes of the decisions they make. A Principal Component Analysis is employed to construct an index of governance quality capturing six key aspects of board responsibilities. In Chapter 2, I turn to examine whether firms’ corporate governance quality can positively influence their stock returns and operating performance using the newly developed index that accounts for the dynamic nature of internal governance choices. By constructing decile portfolios of firms based on this measure of governance quality, I show that portfolios of firms with better governance quality outperform firms within the lower governance quality portfolios. Specifically, zero-investment strategies that buy HQ portfolios (highest governance quality) and short LQ portfolios (weakest governance quality) generate 3.9% and 3.2% returns for equally- and value-weighted portfolios, respectively. Finally, in Chapter 3, I follow a similar approach to that developed in the first two chapters to construct a dynamic governance quality index for a sample of public companies from 16 European countries. Comparing the returns of the portfolios based on this index reveals that European companies with higher governance quality (HQ portfolio) generally outperform their peers which possess a lower quality of governance (LQ portfolio). The findings also show that firm level governance can be affected by country-level elements such as legal and institutional structures. en
dc.publisher ResearchSpace@Auckland en
dc.relation.ispartof PhD Thesis - University of Auckland en
dc.relation.isreferencedby UoA en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights.uri en
dc.title Essays on Corporate Governance and Firm Performance en
dc.type Thesis en Finance en The University of Auckland en Doctoral en PhD en
dc.rights.holder Copyright: The author en
dc.rights.accessrights en
pubs.elements-id 797128 en
pubs.record-created-at-source-date 2020-03-30 en

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