Boards of directors and firm leverage: Evidence from real estate investment trusts

Doan, Trang; Nguyen, Nga

doi:10.1016/j.jcorpfin.2018.05.007

Cited by 17 publications

(11 citation statements)

References 49 publications

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“…Model 1 shows that the performance decreases for firms with high leverage after complying with the reforms (0.240 + (−0.526) = −0.286), but the firm fixed effects, the interaction variable, indicates an increase in the value for firms with high leverage, although the increase is significantly lower than for firms with low leverage. These results are in line with previous research demonstrating the negative impact of leverage on the firm performance (Lang et al 1996;Cai and Zhang 2011;Giroud et al 2012;Fauver et al 2017;Doan and Nguyen 2018;El Ghoul et al 2019) and support the Hypothesis 2.…”

Section: Effect Of the Firm Leveragesupporting

confidence: 92%

Reforms Protecting Minority Shareholders and Firm Performance: International Evidence

Burunciuc

Gönenç

2020

JRFM

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This study investigates the effect of corporate governance reforms protecting minority shareholders on the firm value measured by Tobin’s Q. Using the difference-in-differences estimation and a large international sample from 65 countries for the period 2005–2018, the results show that the firm values increase more in the reform countries than non-reform countries relative to pre-reform levels. This positive effect changes for firms with high and low levels of debt. Moreover, the values after reforms increase more for firms located in civil countries and in countries with rule-based reform approaches and low debt enforcement because the reforms strengthening minority shareholder protection are more efficient in those countries. The evidence is robust to accounting-based performance as well.

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Section: Effect Of the Firm Leveragesupporting

confidence: 92%

Reforms Protecting Minority Shareholders and Firm Performance: International Evidence

Burunciuc

Gönenç

2020

JRFM

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“…The study employed the widely used measurement of firm performance in order to present unbiased results in assessing the impact of working capital management on firm performance during the period of economic recession 2012–2016 in developing economies (Nigeria and Ghana). We measured firm performance using the accounting measures return on equity (ROE), ROA (Ciftci et al, 2019) and market measure (Tobin’s q ), following the studies of Doan and Nguyen (2018), Augusto et al (2018) and Sajid and Afza (2018), with their measurements presented in Table 1.…”

Section: Methodsmentioning

confidence: 99%

Combination of Ant Colony Optimization and K-nearest Neighbours: The Influence of Working Capital Management on Corporate Performance

Coleman

2020

Management and Labour Studies

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Purpose: This study looked at the influence of working capital management on firm performance using both accounting measure (ROE) and market measure (Tobin’s q) of firms listed in Nigeria and Ghana. Design/methodology/approach: The study used ant colony optimization (ACO) and k-nearest neighbours (KNN) in establishing the long-term effect of working capital management on corporate performance. Data were extracted from annual financial reports of non-financial companies listed on the Nigeria and Ghana stock exchanges for the recession period 2012–2016, with a total observation of 510. Findings: ACO was applied to determine the working capital management variables that influence corporate performance, and KNN predicted its longitudinal influence, which, in our view, has not been deeply researched. It was discovered that non-financial firms in the period of economic crises manage the account receivables and payables, as well as cash conversion cycles, maintaining optimum working capital for efficient operational activities. It is therefore assumed that these firms are exposed to external and other sources of finance, which enables them to increase investment in working capital, preventing the risk of low production hindering firms from settling debt, as well as customers, leading to the collapse of many firms in this region and accounting for an increase in the unemployment rate. Research limitations/implications: This study will inform corporate management and policymakers on the effect of economic crises on the performance of firms in the management of working capital to achieve desirable accounting and market performance. The ability of a firm to manage working capital during boom and recession periods enhances maximization of shareholders’ wealth. Originality/value: This study will alert policymakers to the urgency in setting up appropriate policies to address pertinent issues regarding longitudinal influence of economic crises on firm continuity and value. JEL Code: M4

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“…Audit committees with financial expertise are considered an internal monitoring mechanism that can mitigate agency problems and tend to impact on indebtedness policy (Javaid and Javid, 2017). Past research has analysed the effect of some aspects of corporate field with the level of debt such as the independent directors (Doan and Nguyen, 2018), audit committees expertise (Carcello, Hollingsworth, Klein and Neal, 2006), firm size (Harford, Li and Zhao, 2007), Board Structure Type (Calza, Profumo and Tutore, 2017), CEO duality (Harris, 2014), board structure type (Pucheta-Martínez, Gallego-Álvarez and Bel-Oms, 2019), gender diversity (Harris, 2014), among others. The hypotheses to study in Big Data context are:…”

Section: Hypothesismentioning

confidence: 99%

Big Data in Corporate Governance decision

Grau

Oms

2020

CARMA 2020 - 3rd International Conference on Advanced Research Methods and Analytics

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Progress in Big Data in recent years has grown exponentially, which hasallowed the detection and processing of a large amount of data. Until recently,this fact was unattainable by the lack of mechanization of the corporategovernance reports. This paper investigates the relationship betweencorporate governance decisions affect the indebtedness policies of 1,956industrial companies listed in Europe and the USA over the period 2016–2018(5,868 observations). To measure corporate governance decisions, we usedetailed information on the expertise of audit committees, the proportion ofindependent directors, board structures and women's presence on corporateboards. Our findings, which are based on a static panel data analysis, showthat there is a strong negative relationship between Audit Committeesexpertise and indebtedness level in European and North American companies.There are also evidence that European and American companies with a one-tier board structure and Audit Committees expertise are less likely to havelower level of indebtedness. Our results shed new light on corporategovernance in relation to the experience of audit committees and the influenceof their characteristics on indebtedness policy.

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Boards of directors and firm leverage: Evidence from real estate investment trusts

Cited by 17 publications

References 49 publications

Reforms Protecting Minority Shareholders and Firm Performance: International Evidence

Reforms Protecting Minority Shareholders and Firm Performance: International Evidence

Combination of Ant Colony Optimization and K-nearest Neighbours: The Influence of Working Capital Management on Corporate Performance

Big Data in Corporate Governance decision

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