Financial Performance and Corporate Governance on Firm Value: Evidence from Spain

Leslie Rodríguez Valencia ()
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Leslie Rodríguez Valencia: Department of Business and Business Analytics, Universidad Europea de Madrid, C. Tajo, s/n, 28670 Madrid, Spain

IJFS, 2025, vol. 13, issue 3, 1-24

Abstract: This paper investigates the financial performance and corporate governance variables that influence firm valuation. This study analyzes 91 Spanish small and medium-sized enterprises (SMEs) listed on BME Growth using a fixed effects panel data model based on 5760 observations. This study covered a period of five years from 2015 to 2019. This study concludes that profitability, capital structure and ownership concentration are key value drivers, while liquidity and efficiency are not statistically significant and require further contextual examination. Regarding corporate governance, the presence of controlling shareholders was found to have a significant positive impact on firm value, reinforcing the importance of ownership concentration in reducing agency conflicts and enhancing oversight. Other governance frameworks, such as firm structure and managerial concentration, did not exhibit significant effects.

Keywords: firm value; financial performance; corporate governance; Tobin’s Q (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2025
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