Board reforms and firm value: Worldwide evidence

• 成果类型: Article
• 署名作者: Fauver, Larry; Hung, Mingyi; Li, Xi; Taboada, Alvaro G.
• 署名单位: University of Tennessee System; University of Tennessee Knoxville; Hong Kong University of Science & Technology; Mississippi State University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2017.04.010
• 发表日期: 2017
• 页码: 120-142
• 关键词: Cross-country study; Firm value; Board reforms

摘要

We examine the impact of corporate board reforms on firm value in 41 countries. Using a difference-in-differences design, we find that board reforms increase firm value. Reforms involving board and audit committee independence, but not reforms involving separation of chairman and chief executive officer positions, drive the valuation increases. In addition, while comply-or-explain reforms result in a greater increase in firm value than rule-based reforms, the effects of reforms are similar across civil law and common law countries. Further investigation shows that the subsequent change in board independence plays an important role in explaining the effectiveness of the reforms. (C) 2017 Elsevier B.V. All rights reserved.