Does Corporate Governance Determine Corporate Performance and Dividends During Financial Crisis: Evidence from Poland

Wharton Financial Institutions Center Working Paper No. 12-14

40 Pages Posted: 14 Sep 2012

See all articles by Oskar Kowalewski

Oskar Kowalewski

IESEG School of Management; LEM - CNRS 9221

Date Written: September 13, 2012

Abstract

This study seeks to investigate the relationship between corporate governance, measured by Corporate Governance Index (CGI), and firm’s performance and dividend payouts during the financial crisis in Poland. The empirical approach in the study lies in constructing a comprehensive measures of the corporate governance for 298 non-financial companies listed on Warsaw Stock Exchange in the years 2006-2010. The results shows a positive association between corporate governance and performance measured by Tobin’s q. Moreover, I find evidence that higher corporate governance leads to an increase in cash dividends. Finally, the results presents that during the recent financial crisis corporate governance is positively associated with return on assets. However, in the period of the financial crisis better governed companies paid dividends less generously than do firms with lower corporate governance standards

Keywords: corporate governance, firm performance, dividend policy, emerging markets

JEL Classification: G18, G30, G34, G39, K22, K29

Suggested Citation

Kowalewski, Oskar, Does Corporate Governance Determine Corporate Performance and Dividends During Financial Crisis: Evidence from Poland (September 13, 2012). Wharton Financial Institutions Center Working Paper No. 12-14, Available at SSRN: https://ssrn.com/abstract=2146168 or http://dx.doi.org/10.2139/ssrn.2146168

Oskar Kowalewski (Contact Author)

IESEG School of Management ( email )

1 Parvis de La Défense
Socle de la Grande Arche
Paris La Défense cedex, 92044
France

HOME PAGE: http://www.ieseg.fr/en/faculty-and-research/professor/?id=1740

LEM - CNRS 9221 ( email )

Lille
France

HOME PAGE: http://lem.cnrs.fr/

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
340
Abstract Views
2,032
Rank
161,852
PlumX Metrics