Corporate governance practices of small cap companies and their financial performance: An empirical study in new zealand
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
International Journal of Business Governance and Ethics 4 (1):51-78 (2008)
The purpose of this paper is to examine the effect of corporate governance practices of small cap companies have had on their financial performances. Previous studies have mainly examined governance practices of larger corporations. This analysis focuses on the governance variables that have been highlighted by the New Zealand Securities Commission (2004) governance principles and guidelines and also on the governance variables that are supported in the literature as providing an appropriate structure for the firm in the environment in which it operates. The data for 71 small cap companies listed in New Zealand over a five-year period from 2001 to 2005 was analysed. Pooled data, OLS and 2SLS regression techniques were used and Tobin's Q, ROA and OPINC were used as the dependent variables. The evidence does support the hypothesis that the existence of board independence and audit committee has enhanced firm financial performance, as measured by Tobin's Q.
|Keywords||No keywords specified (fix it)|
|Categories||categorize this paper)|
|Through your library||Configure|
Similar books and articles
Silvia Ayuso & Antonio Argandoña, Responsible Corporate Governance: Towards a Stakeholder Board of Directors?
C.-F. Wu (2006). The Study of the Relations Among Ethical Considerations, Family Management and Organizational Performance in Corporate Governance. Journal of Business Ethics 68 (2):165 - 179.
Alexandre Di Miceli Silveirdaa & Richard Saito, Corporate Governance in Brazil: Landmarks, Codes of Best Practices, and Main Challenges.
Stephen Yan-Leung Cheung, J. Thomas Connelly & Piman Limpaphayom (unknown). Determinants of Corporate Disclosure and Transparency: Evidence From Hong Kong and Thailand. :313-342.
Stephen Yan-Leung Cheung, J. Thomas Connelly & Piman Limpaphayom (2007). Determinants of Corporate Disclosure and Transparency. International Corporate Responsibility Series 3:313-342.
Chris Ogbechie & Dimitrios N. Koufopoulos (2007). Corporate Governance Practices in Publicly Quoted Companies in Nigeria. International Journal of Business Governance and Ethics 3 (4):350-381.
Coral B. Ingley & Kevin McCaffrey (2007). Effective Governance for Start-Up Companies: Regarding the Board as a Strategic Resource. International Journal of Business Governance and Ethics 3 (3):308-329.
John Nowland (2008). Are East Asian Companies Benefiting From Western Board Practices? Journal of Business Ethics 79 (1/2):133 - 150.
Lorne N. Switzer & Catherine Kelly (2006). Corporate Governance Mechanisms and the Performance of Small-Cap Firms in Canada. International Journal of Business Governance and Ethics 2 (s 3-4):294-328.
Added to index2009-01-28
Total downloads18 ( #76,894 of 1,006,576 )
Recent downloads (6 months)1 ( #64,735 of 1,006,576 )
How can I increase my downloads?