Corporate governance and firm performance in hybrid model countries

IF 3.6 Q1 BUSINESS, FINANCE Review of Accounting and Finance Pub Date : 2022-02-23 DOI:10.1108/raf-10-2020-0293
Alfonso Mendoza-Velázquez, Luis Carlos Ortuño-Barba, L. D. Conde-Cortés
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引用次数: 7

Abstract

Purpose This paper aims to examine the dynamic nexus between corporate governance (CG) and firm performance in hybrid model countries. It also investigates the effect of horizontal agency conflicts on CG adherence. Design/methodology/approach This research uses vector autoregression methods and dynamic panels to examine the cross-sectional and longitudinal association between CG and performance, using three CG adherence indexes of transparency, management and board governance. The data set includes annual market and firm performance data from a sample of 93 companies trading in the Mexican stock market for the period 2010–2016. Findings This study finds evidence of dynamic interdependence between CG and firm performance, as well as weak effects of CG adherence on firms’ performance. The adverse effect of increasing return on equity and return on assets (ROE-ROA) gaps on CG adherence, which results from agency conflicts and insider ownership, is likely behind the weak association between CG and firm performance. Originality/value The findings in this study provide evidence that hybrid systems weaken the nexus between CG and firm performance. The propensity to prefer banking and bond debt to issuing stocks, as indicated by a greater ROE-ROA gap, points to favorable provisions for majority shareholders, adverse normative environments for minority shareholders and a low level of compliance with CG measures, among other problems.
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混合模式国家的公司治理与公司绩效
目的研究混合模式国家的公司治理与企业绩效之间的动态关系。研究了横向代理冲突对CG依从性的影响。设计/方法/方法本研究采用向量自回归方法和动态面板,采用透明度、管理层和董事会治理三个CG依从性指标,检验CG与绩效之间的横断面和纵向关联。该数据集包括2010-2016年期间在墨西哥股票市场交易的93家公司的年度市场和公司业绩数据。本研究发现了企业绩效与企业绩效之间存在动态相互依赖关系的证据,以及企业绩效对企业绩效的弱影响。代理冲突和内部人持股导致的股本回报率和资产回报率(ROE-ROA)差距增大对企业治理依从性的不利影响,可能是企业治理与企业绩效弱关联的背后原因。独创性/价值本研究的发现提供了证据,证明混合系统削弱了CG与公司绩效之间的联系。更大的ROE-ROA差距表明,倾向于选择银行和债券债务而不是发行股票,这表明对大股东有利的规定,对小股东不利的规范环境以及对CG措施的遵守程度较低等问题。
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来源期刊
CiteScore
4.30
自引率
0.00%
发文量
18
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