An examination of the relationship of governance mechanisms to performance

Coles, Jerilyn W.; McWilliams, Victoria B.; Sen, Nilanjan

doi:10.1016/s0149-2063(00)00085-4

Cited by 135 publications

(72 citation statements)

References 52 publications

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“…The Board composition (BC) variable is captured by the percentage of non-executive directors in the Board of Directors at the end of each examined financial year. Director classifications are those used in previous studies (Weisbach 1988;Hermalin and Weisbach 1988;Brickley et al 1994;Coles et al 2001;Adams and Mehran 2003;John and Qian 2003). Directors that are currently employed by the firm, retired employees of the firm, related company officers or immediate family members of firm employees are classified as executives.…”

Section: Data Collection and Methodologymentioning

confidence: 99%

The effect of board size and composition on European bank performance

2007

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Section: Data Collection and Methodologymentioning

confidence: 99%

The effect of board size and composition on European bank performance

2007

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“…Organizations are constrained to a certain degree by opportunities available to the industry. Firms in industries, where there are growth opportunities, where there are concentrated competitors, or where markets are stable, should have higher profits than industries that are in decline (Coles et al, 2001). To control for these effects, the firms in the sample were divided into 24 broad industry groups, and dummy variables representing these industry groups were introduced in the model.…”

Section: Control Variablesmentioning

confidence: 99%

Corporate Governance and Performance of Indian Firms: The Effect of Board Size and Ownership

Dwivedi

Jain

2005

Employ Respons Rights J

173

122

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The paper reviews international literature on corporate governance and firm performance and investigates the relationship in the Indian context, taking into account the endogeneity in the relationship. Governance parameters include board size, directors' shareholding, institutional and foreign shareholding, while the fragmentation in shareholding is captured by public shareholding. A simultaneous equation regression model for Tobin's Q, as a measure of firm performance, is attempted using these variables, while controlling for industry effects and other non-governance variables. The data corresponds to a panel of 340 large, listed Indian firms for the period 1997-2001 spread across 24 industry groups.

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“…Beginning with Kesner's (1987) study of directors' stock ownership, researchers have been interested in the effect of board ownership on firm performance. Coles et al (2001) studied board stock ownership and hypothesized that firms with a higher proportion of stock ownership at the board level would have better financial performance. Coles et al (2001) found no evidence to support this hypothesis, with Daily et al (2003) finding a lack of documented evidence for this practice.…”

Section: Venture Capital Involvement and Preferred Stockmentioning

confidence: 99%

“…Coles et al (2001) studied board stock ownership and hypothesized that firms with a higher proportion of stock ownership at the board level would have better financial performance. Coles et al (2001) found no evidence to support this hypothesis, with Daily et al (2003) finding a lack of documented evidence for this practice. A difference in Kesner's (1987) and Coles et al's (2001) research from this study is that Kesner (1987) and Coles et al (2001) studied only large firms.…”

Section: Venture Capital Involvement and Preferred Stockmentioning

confidence: 99%