The Value of Governance

6 Pages Posted: 26 Sep 2013

See all articles by Anita Anand

Anita Anand

University of Toronto - Faculty of Law

Date Written: September 24, 2013


Corporate directors sometimes question the usefulness of “good governance”, asking whether implementing measures to improve corporate governance makes a difference. As this article shows, the preponderance of academic research suggests that the quality of governance does indeed matter. A common theme is a statistically significant and positive relationship between corporate governance measures and firm value. For example, Board composition, ownership structure, and the presence of institutional shareholders have all been found to relate to valuation outcomes. The strong implication is that the increasing emphasis by institutional investors such as pension funds on the quality of corporate governance in their investment practices is not misplaced.

Keywords: Corporate Governance, Firm Value, Good Governance, Governance Impact, Pension Fund

Suggested Citation

Anand, Anita, The Value of Governance (September 24, 2013). Rotman International Journal of Pension Management, Vol. 6, No. 2, 2013, Available at SSRN: or

Anita Anand (Contact Author)

University of Toronto - Faculty of Law ( email )

78 Queen's Park
Toronto, Ontario M5S 2C5
4169464002 (Phone)

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