Corporate Governance and Firm Value: Evidence from Canadian Capital Markets

Corporate Ownership and Control Journal, Vol. 6, No. 3, Spring 2009

35 Pages Posted: 20 Mar 2009

See all articles by Parveen P. Gupta

Parveen P. Gupta

Lehigh University - Department of Accounting

Duane B. Kennedy

University of Waterloo - School of Accounting and Finance

Samuel C. Weaver

Lehigh University - Department of Finance

Date Written: January 7, 2009

Abstract

The Globe and Mail's Report on Business annually publishes governance rankings for more than 200 companies represented in the TSX/S&P index. There are four sub-categories that comprise the composite scores: board composition; board and CEO compensation; shareholder rights; and board governance disclosure. The purpose of this paper is to examine the association between the composite or sub-category corporate governance scores and various measures of firm value. We test for this association using data for 2002 through 2005 on the Report on Business rankings and various financial and market measures. Overall, our study does not find an association between the composite or sub-category corporate governance scores and the various measures of firm value.

Keywords: Corporate Governance, Corporate Valuation, Corporate Performance, Information Content

JEL Classification: F30, G15, G28, G32, G34, K22, K40

Suggested Citation

Gupta, Parveen P. and Kennedy, Duane B. and Weaver, Samuel C., Corporate Governance and Firm Value: Evidence from Canadian Capital Markets (January 7, 2009). Corporate Ownership and Control Journal, Vol. 6, No. 3, Spring 2009. Available at SSRN: https://ssrn.com/abstract=1366045

Parveen P. Gupta (Contact Author)

Lehigh University - Department of Accounting ( email )

621 Taylor Street
RBC #37
Bethlehem, PA 18015
United States
610-758-3443 (Phone)
610-758-5992 (Fax)

HOME PAGE: http://www.lehigh.edu

Duane B. Kennedy

University of Waterloo - School of Accounting and Finance ( email )

200 University Avenue West
Waterloo, Ontario N2L 3G1
Canada
519-888-4752 (Phone)

Samuel C. Weaver

Lehigh University - Department of Finance ( email )

621 Taylor Street
Bethlehem, PA 18015
United States

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