Department of Finance & Decision Sciences
Corporate governance, investment, and firm valuation in Asian emerging markets
We investigate the effects of corporate governance and family ownership on firm valuation through investment efficiency in Asian emerging markets. Using 3 years of time series data from the Credit Lyonnais Securities Asia corporate governance score for 10 Asian emerging markets, we find that good corporate governance leads to better or more efficient investment decisions and eventually to higher firm value. We also find that investors reward firms for improvement in corporate governance. The findings do not hold for Asian firms with a family or concentrated ownership structure. The results are not driven by changes in accounting standards in these markets. © 2011 Blackwell Publishing Ltd.
Source Publication Title
Journal of International Financial Management and Accounting
Cheung, Yan-Leung, Aris Stouraitis, and Weiqiang Tan. "Corporate governance, investment, and firm valuation in Asian emerging markets." Journal of International Financial Management and Accounting 22.3 (2011): 246-273.