CEO characteristics and firm valuation: a quantile regression analysis

Nguyên, Pascal; Rahman, Nahid; Zhao, Rui

doi:10.1007/s10997-017-9383-7

Cited by 53 publications

(50 citation statements)

References 59 publications

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“…Specifically, H3ayounger CEOs in newer firms achieve better firm performanceis verified in the first solution in Table V. This confirms the results of Nguyen et al (2018) and is in line with the argument of Mishra et al (2000) about the CEO's age and motivation. However, H3bolder CEOs in older firms achieve better firm performanceis not verified.…”

supporting

confidence: 84%

Investigating the determinants of firm performance

Kourtzidis

Tzeremes

2019

EJMBE

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Purpose The purpose of this paper is to use tenets of the complexity theory in order to study the effect of various determinants of firm’s performance, such as CEO’s compensation and age, for the case of 72 insurance companies. Design/methodology/approach The authors identify the asymmetries in the data set by creating quantiles and using contrarian analysis. Instead of ignoring this information and use a main effects approach, all the available information in the data set is taken into account. For this purpose, the authors use qualitative comparative analysis to find alternative equifinal routes toward high firm performance. Findings Five configurations are found which lead to high performance. Every one of the five configurations is found to be sufficient but not necessary for high firm performance. Originality/value The research findings contribute to a better understanding of the determinants of firm’s performance taking into account the asymmetries in the data set. The authors identify alternative paths toward high firm performance, which could be vital information for the decision maker inside a firm.

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supporting

confidence: 84%

Investigating the determinants of firm performance

Kourtzidis

Tzeremes

2019

EJMBE

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“…A study conducted by Naseem et al (2019) in Pakistan found that as the CEO works more on his and her position the more they tend to be opportunistic and firm performance decreases. CEO tenure also has a negative association with the value of the firm, so as the CEO tenure increase its value decreases (Nguyen et al, 2018). Kaur (2019) also found that long-term CEO, as well as feminine CEO, has a negative impact on firm performance.…”

Section: Board Characteristics 221 Board Independence (Ined)mentioning

confidence: 95%

The impact of corporate governance on the cost of equity

Yang

Sarwar

Ali

2019

AJAR

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Purpose In view of organizational inertia, with the occurrence of a major event, though resource rigidity minimizes, however simultaneously, it increases process rigidity, which creates difficulties in motivating managers and dealing with the agency problem. Therefore, keeping in mind the high demand created by the China–Pakistan Economic Corridor and Naya Pakistan Housing Scheme in the cement sector of Pakistan, the purpose of this paper is to investigate the impact of corporate governance (CG) on the cost of equity (COE) in the cement sector, to deal with the problems surging during and after the completion of these projects and highlight further opportunities for the cement sector of Pakistan. Design/methodology/approach CG is a qualitative concept therefore, eight proxies have been used to measure it along with the two control variables. This study uses balance panel data of six years from 2012 to 2017, collected from 18 companies of the cement sector of Pakistan. Descriptive statistics have been used to describe the data, correlation matrix to see the nature of the relationship, and Pooled OLS as the estimation technique, while to analyze the data a statistical package 13 has been used. To measure the COE, the Capital Asset Pricing Model (CAPM) has been used. Findings Regression results suggest that block ownership, insider ownership and the board size are insignificant, while CEO tenure is negatively and significantly associated with the COE. Non-executive directors, independence and CEO duality are insignificant; however, diversity is positively and significantly associated with the COE. Moreover, the mean value of the COE is 8.22 percent for the cement sector, while the coefficient of determination of the model under study is 74 percent. Research limitations/implications This paper is based on the data from the cement sector of Pakistan only. Therefore, this is the reason that these results cannot be generalized on the whole economy of Pakistan. Practical implications This study helps in finding out the COE value specific to the cement sector, which will help this sector to evaluate the capital budgeting decision more precisely and accurately than before. Moreover, the association of diversity as positive, while independence as negative with the COE highlights a room for improvement in the implementation of CG codes by SECP. This study also helps to mitigate the impact of inertia, the after-effects of high demand, and managing the agency problem in the cement sector. Originality/value This is the first study using CG data collected just after the revised promulgation of CG codes in 2012, along with a wide range of eight proxies measuring CG and its impact on the COE in the cement sector.

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“…Variables that measure firms are included in our studies as follows, according to Chen et al [9], Nguyen et al [38], and Rubin and Smith [39]. Firm-level variables include log market capitalization (SIZE), leverage ratio (LEVERAGE), stock return (RET), and turnover (TURN).…”

Section: Firm-level Control Variablesmentioning

confidence: 99%

Institutional Investors and Corporate Performance: Insights from China

Lin

Jun

2019

Sustainability

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This study uses the annual data of Chinese A-share listed companies held by institutional investors during the period of 2005–2016 for empirical analysis. First, this study uses the panel regression model to explore the relationship between institutional ownership and stock return volatility. Then, the CAPM one-factor model and the Fama–French three-factor model are used to analyze the relationship between institutional ownership and idiosyncratic risks. Finally, we estimate the relationship between institutional ownership and corporate governance. Furthermore, we compare the empirical results before, during, and after the crisis. This study uses the Hausman test and the endogenous test to validate the results. The empirical results show that the management behavior of independent institutional investors is more obvious post-crisis. However, gray institutional investors have no impact on idiosyncratic risks. In the regression of the CAPM one-factor model, domestic institutional investors have effectively reduced the idiosyncratic risks before the financial crisis. Foreign institutions’ monitoring performance before, during, and after the crisis is not obvious. All institutional ownership has a significant positive impact on the top 10 shareholders, but independent and domestic institutional ownership has a significant negative impact on senior shareholders. Institutional ownership has little impact on the movement of the first shareholder and CEO.

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CEO characteristics and firm valuation: a quantile regression analysis

Cited by 53 publications

References 59 publications

Investigating the determinants of firm performance

Investigating the determinants of firm performance

The impact of corporate governance on the cost of equity

Institutional Investors and Corporate Performance: Insights from China

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