Size Really Matters: Further Evidence on the Negative Relationship between Board Size and Firm Value

This study examines the impact of corporate governance mechanisms on the firm value of Singapore and Malaysia firms (as measured by Tobin's Q). We find little evidence of relationships between most corporate governance mechanisms and Tobin's Q. However, consistent with Yermack [Higher mark...

Full description

Saved in:
Bibliographic Details
Main Authors: KUSNADI, Yuanto, Mak, Y. T.
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2005
Subjects:
Online Access:https://ink.library.smu.edu.sg/soa_research/1150
http://dx.doi.org/10.1016/j.pacfin.2004.09.002
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Singapore Management University
Language: English
id sg-smu-ink.soa_research-2149
record_format dspace
spelling sg-smu-ink.soa_research-21492013-10-24T09:48:03Z Size Really Matters: Further Evidence on the Negative Relationship between Board Size and Firm Value KUSNADI, Yuanto Mak, Y. T. This study examines the impact of corporate governance mechanisms on the firm value of Singapore and Malaysia firms (as measured by Tobin's Q). We find little evidence of relationships between most corporate governance mechanisms and Tobin's Q. However, consistent with Yermack [Higher market valuation of firms with a small board of directors. J. Financ. Econ. 40 (1996), 185–211] and Eisenberg et al. [Larger board size and decreasing firm value in small firms. J. Financ. Econ. 48 (1998), 35–54], we find that there is an inverse relationship between board size and firm value in both countries. This suggests that the negative relationship between board size and firm value transcends different corporate governance systems. 2005-01-01T08:00:00Z text https://ink.library.smu.edu.sg/soa_research/1150 info:doi/10.1016/j.pacfin.2004.09.002 http://dx.doi.org/10.1016/j.pacfin.2004.09.002 Research Collection School Of Accountancy eng Institutional Knowledge at Singapore Management University Corporate governance Board size Firm value Singapore Malaysia Accounting Business Law, Public Responsibility, and Ethics Corporate Finance
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Corporate governance
Board size
Firm value
Singapore
Malaysia
Accounting
Business Law, Public Responsibility, and Ethics
Corporate Finance
spellingShingle Corporate governance
Board size
Firm value
Singapore
Malaysia
Accounting
Business Law, Public Responsibility, and Ethics
Corporate Finance
KUSNADI, Yuanto
Mak, Y. T.
Size Really Matters: Further Evidence on the Negative Relationship between Board Size and Firm Value
description This study examines the impact of corporate governance mechanisms on the firm value of Singapore and Malaysia firms (as measured by Tobin's Q). We find little evidence of relationships between most corporate governance mechanisms and Tobin's Q. However, consistent with Yermack [Higher market valuation of firms with a small board of directors. J. Financ. Econ. 40 (1996), 185–211] and Eisenberg et al. [Larger board size and decreasing firm value in small firms. J. Financ. Econ. 48 (1998), 35–54], we find that there is an inverse relationship between board size and firm value in both countries. This suggests that the negative relationship between board size and firm value transcends different corporate governance systems.
format text
author KUSNADI, Yuanto
Mak, Y. T.
author_facet KUSNADI, Yuanto
Mak, Y. T.
author_sort KUSNADI, Yuanto
title Size Really Matters: Further Evidence on the Negative Relationship between Board Size and Firm Value
title_short Size Really Matters: Further Evidence on the Negative Relationship between Board Size and Firm Value
title_full Size Really Matters: Further Evidence on the Negative Relationship between Board Size and Firm Value
title_fullStr Size Really Matters: Further Evidence on the Negative Relationship between Board Size and Firm Value
title_full_unstemmed Size Really Matters: Further Evidence on the Negative Relationship between Board Size and Firm Value
title_sort size really matters: further evidence on the negative relationship between board size and firm value
publisher Institutional Knowledge at Singapore Management University
publishDate 2005
url https://ink.library.smu.edu.sg/soa_research/1150
http://dx.doi.org/10.1016/j.pacfin.2004.09.002
_version_ 1770571659630084096