On the relationship between corporate governance and value creation in an economic crisis: Empirical evidence for the Spanish case

Santiago Lago-Peñas, Elena Rivo-López and Mónica Villanueva-Villar

No 1602, Working Papers. Collection C: Family business from Universidade de Vigo, GEN - Governance and Economics research Network

Abstract: This paper analyses the effect of corporate governance on value creation. It relies upon a dataset that includes the companies listed on the Spanish Stock Exchange for the period from 2005 to 2012. Attention is focused on the structure and composition of boards. In particular, four variables are analysed: board_size, board_independence, board_diligence (measured by the number of meetings), and duality (chairman and chief executive officer being the same person). Over the period of the deepest economic crisis (2009-2012) the most significant variables that had a positive effect on value creation were board_independence and board_size. The global financial crisis has highlighted the need for effective corporate governance. Policy makers should think about translating the recommendations of the Good Governance Codes into legislation (mandatory), to improve corporate governance

Keywords: Corporate Governance; Value Creation; Board; Economic Crisis; Independence (search for similar items in EconPapers)
JEL-codes: G32 G34 H11 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2016-06
New Economics Papers: this item is included in nep-cfn
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:gov:wpfami:1602

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