Corporate Governance and Company Performance in Australia
Author(s)
Christensen, Jacqueline
Kent, Pamela
Stewart, Jenny
Griffith University Author(s)
Year published
2010
Metadata
Show full item recordAbstract
This study tests whether the adoption of Australian best practice corporate governance recommendations is associated with financial performance measured by return on assets (ROA) and Tobin's Q. Results suggest that recommended corporate governance structures relating to the adoption of board sub-committees are sound policy recommendations that enhance performance using the accounting measure ROA and the market-based measure Tobin's Q. In contrast, the emphasis on board independence guidelines, specifically having outside independent directors, has a negative impact on ROA and Tobin's Q. However, there are conflicting significant ...
View more >This study tests whether the adoption of Australian best practice corporate governance recommendations is associated with financial performance measured by return on assets (ROA) and Tobin's Q. Results suggest that recommended corporate governance structures relating to the adoption of board sub-committees are sound policy recommendations that enhance performance using the accounting measure ROA and the market-based measure Tobin's Q. In contrast, the emphasis on board independence guidelines, specifically having outside independent directors, has a negative impact on ROA and Tobin's Q. However, there are conflicting significant results between the accounting and market measures for having a dual CEO/chairperson and board size.
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View more >This study tests whether the adoption of Australian best practice corporate governance recommendations is associated with financial performance measured by return on assets (ROA) and Tobin's Q. Results suggest that recommended corporate governance structures relating to the adoption of board sub-committees are sound policy recommendations that enhance performance using the accounting measure ROA and the market-based measure Tobin's Q. In contrast, the emphasis on board independence guidelines, specifically having outside independent directors, has a negative impact on ROA and Tobin's Q. However, there are conflicting significant results between the accounting and market measures for having a dual CEO/chairperson and board size.
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Journal Title
Australian Accounting Review
Volume
20
Issue
4
Subject
Other economics
Accounting, auditing and accountability
Accounting, auditing and accountability not elsewhere classified