In this paper, we fi rst analyzed the responsibility reporting literature with an emphasis on the linkage between responsibility reporting and a fi rm's performance and valuation. Based on the literature review, we developed a research question: How does communication via responsibility reporting affect fi rm value? We analyzed the market valuation of listed Finnish fi rms through a conventional valuation model combined with responsibility reporting. The starting point for our valuation was the Ohlson model. We expanded upon the conventional valuation by studying whether communication via responsibility reporting is related to fi rm valuation. Our research question is linked to the broader academic question of whether earnings worth as an information source has been erased over the last few years. In addition, we contribute to the literature that tries to understand the link between corporate social responsibility and fi rm performance/share performance. Specifi cally, we focused on responsibility reporting according to the Global Reporting Initiative (GRI) and especially on whether the existence of these reports provides a further explanation for fi rm value.Our sample was a population type that covered all listed Finnish fi rms that have adopted GRI. No other responsibility reporting practice was used by listed fi rms in their responsibility reporting communication during the years 2002-2005. The other necessary information for valuation models was obtained from Thomson Financial Services (commercial database).The applied model supported the conclusion that communication via GRI responsibility reporting is an important explanatory factor for a fi rm's market value. The result indicates that responsibility reporting is a part of a fi rm's communication tools in order to decrease information asymmetry between managers and investors. In other words, GRI responsibility reporting is called for in order to produce a more precise market valuation of a fi rm.

Purpose The purpose of this paper is, first, to empirically examine whether the appointment of females (board gender diversity) to the corporate boards of UK financial institutions can improve firm value, and second, to examine whether having females on the boards of UK financial institutions can impact firm value during the pre-/post-global financial crisis periods. Design/methodology/approach The paper uses secondary data obtained from DataStream covering 63 financial institutions over a period of 12 years. A number of additional statistical estimations, including random effects and fixed effects, are conducted to test the robustness of the findings. Findings The outcome of this empirical research shows that the presence of females on the corporate boards of UK financial institutions has a positive and statistically significant relationship with firm value. The authors’ evidence reveals a positive and statistically significant impact on the firm’s value prior to the financial crisis, that is, during the pre-crisis period (2000-2006), meaning that women contributed significantly to the firm’s value. However, after the financial crisis, the presence of females on the board had no significant effect on the firm’s value. A reasonable explanation may be that, whilst the financial crisis was over in the period 2009-2011, the entire UK economy was still experiencing an economic downturn, and financial firms were no exception, irrespective of whether there was female representation on any corporate board. Overall, the findings are consistent with the prior studies. Practical implications The results have practical implications for governments, policy-makers and regulatory authorities, by indicating the importance of women to corporate success. Originality/value Despite several research projects on board gender diversity (BGD), this research is unique compared to the previous empirical studies, primarily because it is the first-time research of this nature is empirically ascertaining BGD and firm value in UK financial institutions, also during the pre-/post-financial crisis era. This paper contributes to the corporate governance literature by offering new insights on board diversity and firms’ value relationship. Overall, the results help fill any gaps on gender diversity and firm value in UK financial institutions.

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Purpose: This study examines the impact of audit committee (AC) adoption on the financial value of financial institutions in the UK and also examines the impact of the establishment of an audit committee on firm value during the pre/post global financial crisis era. Design/methodology/approach: The paper embarks on a theoretical and empirical literature review on audit committee (AC) adoption and its impact on the firm's financial value. The paper uses data from 63 financial institutions and covers a 12-year period. Findings: The empirical results indicate that the adoption of an AC by financial institutions has a positive and statistically significant impact on firm value. The results from the precrisis period also indicate the adoption of an AC makes a positive and significant contribution to firm value. However, there is no impact on firm value during the post-crisis period. Our results suggest that the entire UK economy experienced an economic downturn after the financial crisis (2009)(2010)(2011) and financial firms were no exception. Research limitations/implications: Our study helps to fill research gaps on the relationships between ACs and firm value as they exist in UK financial institutions. These findings are important for policy-makers and regulators. Originality/value: To the best of our knowledge, this research is the first to conduct an empirical study of the effect of AC adoption on UK financial institutions and firm value. Second, no single study has been conducted on the effects of AC adoption and its impact on either the pre-or the post-financial crisis periods. This is the first paper to provide such empirical evidence.

This study focuses on non-institutional trading behaviour around interim earnings announcements in the emerging market. We separate the stock trading activity of Finnish households into five trading classes and compare the results to institutional trading. Data covering the years 1996-2000 shows that earnings news triggers trading in every trading class. We also find some evidence that actively trading individuals especially (compared to passively trading ones) show increased buying and selling activity before the event compared to the non-event period. After the event we find that Finnish households in the most active investor class tend to follow a contrarian strategy, especially selling after good news. This adds to previous evidence by Grinblatt and Keloharju (2000b) . Furthermore, the performance of the active investor classes is superior to that of passive ones. Finally, the institutional trading class is clearly less affected by the announcement than the active investor classes, suggesting that institutions utilize a broader information set than individual investors. Copyright Blackwell Publishers Ltd, 2006.