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
Date Written: January 7, 2009
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: Suggested Citation
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By Chu-an Liu