Do Corporate Governance Recommendations Improve the Performance and Accountability of Small Listed Companies?

32 Pages Posted: 11 Mar 2015

See all articles by Jacqueline I. Christensen

Jacqueline I. Christensen

Bond University - Bond Business School

Pamela Kent

Bond University - Bond Business School

James Routledge

Hitotsubashi University

Jenny Stewart

Griffith University - Griffith Business School

Date Written: March 2015

Abstract

This study examines whether the implementation of the 2003 Australian Securities Exchange Limited governance recommendations influenced the governance choices of small companies and whether compliance improves their accounting and market performance and earnings quality. Our analysis examines small and large companies because we are interested in the different effects of the governance recommendations on the two groups. The analysis shows a significant shift by small and large companies to comply with the recommendations around the time of their introduction. We find that formation of an audit committee surrounding the reform period is significantly associated with improved earnings quality for small and large companies. However, compliance with other governance recommendations is not systematically associated with improved performance or earnings quality.

Keywords: Small companies, Governance, Performance, Accountability

Suggested Citation

Christensen, Jacqueline I. and Kent, Pamela Fae and Routledge, James and Stewart, Jenny, Do Corporate Governance Recommendations Improve the Performance and Accountability of Small Listed Companies? (March 2015). Accounting & Finance, Vol. 55, Issue 1, pp. 133-164, 2015, Available at SSRN: https://ssrn.com/abstract=2576494 or http://dx.doi.org/10.1111/acfi.12055

Jacqueline I. Christensen (Contact Author)

Bond University - Bond Business School ( email )

Gold Coast
Australia

Pamela Fae Kent

Bond University - Bond Business School ( email )

Gold Coast
Australia

James Routledge

Hitotsubashi University ( email )

2-1 Naka Kunitachi-shi
Tokyo 186-8601
Japan

Jenny Stewart

Griffith University - Griffith Business School ( email )

Brisbane, Queensland 4111
Australia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
1,242
PlumX Metrics