The Impact of Board Changes on Shareholder Wealth: some UK evidence

Fox, Alan F.; Opong, Kwaku K.

doi:10.1111/1467-8683.00169

Cited by 21 publications

(24 citation statements)

References 18 publications

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“…This supports earlier work by Fox and Opong (1999), who observe a marked increase in the number of board appointments after 1992, but find no significant share price reaction to the announcement of non-executive appointments.…”

Section: December 2002supporting

confidence: 89%

The Cadbury Committee recommendations on corporate governance – a review of compliance and performance impacts

Dedman

2002

Int J Management Reviews

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In December 1992, the Cadbury Committee published their Code of Best Practice. The recommendations, which largely reflected perceived best practice at the time, included separating the roles of CEO and chairman, having a minimum of three non-executive directors on the board and the formulation of audit committees. The Code also advocated that a more active role be taken by institutional investors in the promotion of good practice in corporate governance. This paper discusses how agency problems may be (partially) resolved by corporate governance, reviews the evidence on compliance with the Cadbury Code and examines the relationship between board structure and firm performance, looking for evidence that the Code has enhanced board performance. While there is no empirical evidence of an association between board structure and firm value, there is some evidence that compliance with the Cadbury recommendations enhances board oversight with respect to the manipulation of accounting numbers and the discipline of the top executive.

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Section: December 2002supporting

confidence: 89%

The Cadbury Committee recommendations on corporate governance – a review of compliance and performance impacts

Dedman

2002

Int J Management Reviews

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“…The board change is defined to be the appointment of a new member in the board during a year (Fox & Opong, 1999).…”

Section: Board Change and Firm Performancementioning

confidence: 99%

The Effect of Board of Directors Characteristics, Audit Committee Characteristics and Executive Committee Characteristics on Firm Performance in Oman: An Empirical Study

Al-Matar¹,

Al‐Swidi²,

Fadzil³

2014

ASS

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This study is an attempt to achieve the main objective by examining the association between the board of director's characteristics, audit committee characteristics and the executive committee characteristics and the performance of the Oman companies. This study used many assumptions to test the relationship between independent variables and dependent variable as discussed in the section explaining the study method. The data comprised of 162 non-financial companies because financial and non-financial companies employ different methods and they have different structures. As this study attempts to bridge the gap in the existing literature by investigating the association between corporate governance mechanisms and firm performance in the emerging market of Oman, it focuses on adding new important variables of corporate governance mechanisms like board change, the role of secretary on the board, the legal counsel and the executive committee characteristics that improve firm performance.The findings indicated a significantly positive relationship between board size, board meeting, audit committee independence and executive committee independence, and the Tobin`s Q. On the other hand, board independence and legal counsel are significantly and negatively related to Tobin`s Q. Moreover, a positive but insignificant relationship is found between CEO tenure, CEO compensation, audit committee size, and the firm performance (Tobin`s Q). Furthermore, board change, the role of the secretary on the board, audit committee meeting, executive committee size and executive committee meeting are revealed to have a negative but insignificant association with firm performance (Tobin`s Q). Finally, this study provides recommendations for future research.

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“…An implication of an efficient market is that no excess returns can be made from this information because current prices already reflect the information. However, excess returns (if any) should not be statistically significant from zero (Fox and Opong, 1999). The overall aim of this study is to test if the Nigerian stock market efficiently reacts to dividend announcements in price adjustments.…”

mentioning

confidence: 99%

“…Un marche´efficient suppose que cette information ne peut eˆtre exploite´e pour re´aliser des gains, parce que les prix actuels la refle`tent de´ja`. Dans le cas ou`des gains peuvent o˜tre re´aliser, ils ne peuvent en aucune fac¸on eˆtre sensiblement supe´rieurs az e´ro, d'un point de vue statistique (Fox et Opong [1999]). La pre´sente e´tude a pour objectif global de ve´rifier si la Bourse des valeurs nige´riane est suffisamment re´ceptive aux de´clarations de dividende, lors de l'ajustement du cours d'une action.…”

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Capital Market Efficiency and the Effects of Dividend Announcements on Share Prices in Nigeria

Adelegan¹

2003

African Development Review

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An efficient market is one in which prices fully reflect available information. An implication of an efficient market is that no excess returns can be made from this information because current prices already reflect the information. However, excess returns (if any) should not be statistically significant from zero (Fox and Opong, 1999). The overall aim of this study is to test if the Nigerian stock market efficiently reacts to dividend announcements in price adjustments. This study extends and improves on previous studies by assessing the speed with which share prices adjust to the information contained in dividend announcements using daily data on the Nigerian stock market. The total number of announcements examined in the Notice to Dealing Members' File of the Nigerian Stock Exchange from 1991 to 1999 totalled 990. The study covered only 595 cases of annual dividend announcements during this period. To determine the short-run reactions to dividend, the author calculated market adjusted buy-and-hold returns for the samples for the three-day event period (that is from the day before the announcements to the day after), for the 21-day and 61-day event windows. The results revealed that there were excess returns and the cumulative excess returns were significant for 30 days before and until 25 days after dividend announcements for dividend paying firms. It points to the fact that the Nigerian stock market is not semi-strong efficient.Re´sume´: Un marche´est efficient si les prix actuels refle`tent toute l'information publique disponible. Un marche´efficient suppose que cette information ne peut eˆtre exploite´e pour re´aliser des gains, parce que les prix actuels la refle`tent de´ja`. Dans le cas ou`des gains peuvent o˜tre re´aliser, ils ne peuvent en aucune fac¸on eˆtre sensiblement supe´rieurs az e´ro, d'un point de vue statistique (Fox et Opong [1999]). La pre´sente e´tude a pour objectif global de ve´rifier si la Bourse des valeurs nige´riane est suffisamment re´ceptive aux de´clarations de dividende, lors de l'ajustement du cours d'une action. Elle vient comple´ter et ame´liorer des e´tudes ante´rieures sur cette question, en e´valuant la vitesse a`laquelle le cours d'une action s'adapte aux informations contenues dans des de´clarations de dividende qui utilisent les donne´es publie´es quotidiennement sur le marche´boursier nige´rian. Quelque 990 de´clarations figurant dans des avis de dividende e´mis entre 1991 et 1999, et classe´s dans les dossiers des courtiers membres de la Bourse des valeurs nige´riane, ont e´te´examine´s au total. L'e´tude ne porte que sur 595 de´clarations annuelles de dividende effectue´es durant cette pe´riode. Pour de´terminer la re´ceptivite´a`court terme du marche´boursier nige´rian a`l'e´gard de ces 595 de´clarations de dividende, l'auteur a calcule´-sur une pe´riode de trois jours (allant de la veille au lendemain du jour ou`les de´clarations ont e´te´effectue´es -les revenus ajuste´s des actions relie´es au marche´immobilier, achete´es et mises en sauvegarde, pour les guichets ...

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The Impact of Board Changes on Shareholder Wealth: some UK evidence

Cited by 21 publications

References 18 publications

The Cadbury Committee recommendations on corporate governance – a review of compliance and performance impacts

The Cadbury Committee recommendations on corporate governance – a review of compliance and performance impacts

The Effect of Board of Directors Characteristics, Audit Committee Characteristics and Executive Committee Characteristics on Firm Performance in Oman: An Empirical Study

Capital Market Efficiency and the Effects of Dividend Announcements on Share Prices in Nigeria

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