Corporate Governance and Firm Valuation in Asian Emerging Markets

Yan-Leung Cheung, J. Thomas Connelly, Jesus P. Estanislao, Piman Limpaphayom (), Tong Lu and Sidharta Utama
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Yan-Leung Cheung: The Hong Kong Institute of Education
J. Thomas Connelly: Chulalongkorn University
Jesus P. Estanislao: Philippines Institute of Corporate Directors
Piman Limpaphayom: Portland State University and Sasin GIBA of Chulalongkorn University
Tong Lu: Chinese Academy of Social Sciences
Sidharta Utama: Indonesian Institute for Corporate Directorship and University of Indonesia

A chapter in Corporate Governance in Emerging Markets, 2014, pp 27-53 from Springer

Abstract: Abstract One of the most contentious issues in the corporate governance debate is the presumed benefits of adopting internationally accepted corporate governance practices. This study investigates the relation between the quality of corporate governance practices and market valuation for listed firms in five Asian economies: China, Hong Kong, Indonesia, the Philippines, and Thailand. Based on the OECD Corporate Governance Principles (Organization of Economic Co-operation and Development, 1999), we use a survey instrument to assess the quality of corporate governance practices of listed companies in these Asian emerging markets. The new instrument represents an improvement over existing instruments as it is more comprehensive, covering five aspects of corporate governance (rights of shareholders, treatment of shareholders, roles of stakeholders, disclosure and transparency, and board responsibilities). The survey instrument also captures variation in the quality of governance practices across firms. The empirical results show there is a positive relation between the quality of corporate governance practices and firm value in each of the five nations.

Keywords: Corporate Governance; Audit Committee; Minority Shareholder; Cash Holding; Market Valuation (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:csrchp:978-3-642-44955-0_2

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DOI: 10.1007/978-3-642-44955-0_2

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