The relationship between market value of a firm and its corporate governance: Evidence from Philippines

• Main Authors: Calma, Angelo, Castillo, Stephen, Pagdonsolan, Gio, Qiao Qiao, Weng
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Corporate governance > Philippines; Fair value > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7157
• Institution: De La Salle University

Corporate governance plays an outmost important role in every company as it embodies the system to which the company follows and has been evolving depending on how the company needs to supervise or govern its stakeholders at its very best. The purpose of this study is to identify whether a firm's corporate governance affects its market value. The data to be used in this study were gathered from Philippine Stock Exchange and also Institute of Corporate Directors that are both based in the Philippines. All used data are secondary. This study was restricted in using the agency theory. This study used correlational research method and to achieve the purpose of the study it used the most appropriate model which is the fixed effects models which focuses on two main variables Tobins Q (measure of market value) and governance and also the control variables: LnAsset, years listed, debt/equity, sales growth, PPE/sales, ebit/sales, market share and debt/assets. After the procedures, the researchers concluded that there is no relationship between corporate governance and market value of a firm. There can be a significant relationship if the researchers inserted the control variables.