Abstract

http://ssrn.com/abstract=1108497
 
 

References (90)



 
 

Citations (3)



 


 



Corporate Governance and Firm Performance: Evidence from Large Governance Changes


N.K. Chidambaran


Fordham University - Schools of Business

Darius Palia


Rutgers Business School

Yudan Zheng


Long Island University

March 18, 2008


Abstract:     
We study the relationship between governance changes and firm characteristics and the impact of governance changes on future firm performance using a sample of firms that make large positive and large negative changes in thirteen governance measures. We find that the governance changes are driven by a movement towards mean industry governance levels and merger pressure, and are related to changes in the firm's observable characteristics. For each governance measure, we examine the future performance of the sample of firms with a large increase in the governance measure and the future performance of the sample of firms with a large decrease in the governance measure. We find that both positive and negative governance changes lead to statistically significant performance changes. However, we find that there is no significant difference in performance between the large positive governance change and the large negative governance change samples. We conclude that the observed changes in governance are consistent with the notion that firms are in equilibrium with respect to their governance structures. These findings are robust to: alternate definitions of firm performance, a large sample of firms over eleven years, and alternate definitions of large governance changes.

Number of Pages in PDF File: 64

working papers series


Download This Paper

Date posted: March 21, 2008  

Suggested Citation

Chidambaran, N.K. and Palia, Darius and Zheng, Yudan, Corporate Governance and Firm Performance: Evidence from Large Governance Changes (March 18, 2008). Available at SSRN: http://ssrn.com/abstract=1108497 or http://dx.doi.org/10.2139/ssrn.1108497

Contact Information

N.K. Chidambaran
Fordham University - Schools of Business ( email )
United States

Darius Palia (Contact Author)
Rutgers Business School ( email )
111 Washington Street
MEC 134
Newark, NJ 07102
United States
973-353-5981 (Phone)
973-353-1233 (Fax)
Yudan Zheng
Long Island University ( email )
H700
1 University Plaza
Brooklyn, NY 11201
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,517
Downloads: 426
Download Rank: 36,933
References:  90
Citations:  3
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.375 seconds