Corporate Governance and Shareholder Value in Listed Firms: An Empirical Analysis in Five Countries (France, Italy, Japan, UK, USA)

35 Pages Posted: 3 Mar 2013

See all articles by Barbara Monda

Barbara Monda

RiskGovernance - Politecnico di Milano, Management, Economics and Industrial Engineering Department

Marco Giorgino

Polytechnic University of Milan

Date Written: March 1, 2013

Abstract

In this paper, we design a multi-dimensional index to measure the quality of Corporate Governance systems adopted by firms and use it to investigate the correlation between Corporate Governance quality and firm value.

Unlike most studies that examine the relationship between only one dimension of Governance and firm value, we present a complex index (CGI) composed of 39 variables referable to four dimensions: Board, Remuneration, Shareholder Rights and Disclosure.

By analysing a sample of 100 large companies listed on the main stock markets in five different countries over three years (2009-2011), we confirm the widespread hypothesis of the existence of a positive and statistically significant relationship between Corporate Governance, as measured by a subset of 12 variables, and firm value.

Keywords: Corporate Governance, Corporate Governance Index, firm value

JEL Classification: G30, G32, G34

Suggested Citation

Monda, Barbara and Giorgino, Marco, Corporate Governance and Shareholder Value in Listed Firms: An Empirical Analysis in Five Countries (France, Italy, Japan, UK, USA) (March 1, 2013). Available at SSRN: https://ssrn.com/abstract=2227184 or http://dx.doi.org/10.2139/ssrn.2227184

Barbara Monda (Contact Author)

RiskGovernance - Politecnico di Milano, Management, Economics and Industrial Engineering Department ( email )

Piazza Leonardo da Vinci, 32
Milano, 20133
Italy

HOME PAGE: http://www.risk-governance.eu

Marco Giorgino

Polytechnic University of Milan ( email )

vial Lambruschini 4B
Milan, Milan 20156
Italy

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