The Relation between corporate governance and market value: mitigating endogeneity Problems

Detalhes bibliográficos
Autor(a) principal: Caixe, Daniel Ferreira
Data de Publicação: 2014
Outros Autores: Krauter, Elizabeth
Tipo de documento: Artigo
Idioma: eng
por
Título da fonte: BBR. Brazilian Business Review (English edition. Online)
Texto Completo: http://www.bbronline.com.br/index.php/bbr/article/view/355
Resumo: This paper investigates whether the adoption of good corporate governance practices influences the market value of Brazilian firms. For this purpose, we used an unbalanced panel over the period from 2002 to 2010, composed of 233 listed nonfinancial companies, for a total of 1,110 observations. Because of endogeneity problems such as omitted variables, simultaneity and the feedback effect, we employed dynamic multiple linear regression models, estimated by the systemgeneralized method of moments (System GMM). The results indicate that firms listed in one of the three premium corporate governance segments of the BM&FBovespa (Level 1, Level 2 and Novo Mercado) are priced higher by the market compared to firms listed in the traditional trading segment. Therefore, corporate governance has a positive effect on the market value of Brazilian firms.
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spelling The Relation between corporate governance and market value: mitigating endogeneity ProblemsRelação entre governança corporativa e valor de mercado: mitigando problemas de endogeneidadeCorporate governanceMarket valueGeneralized method of momentsGovernança corporativaValor de mercado corporativoMétodo dos momentos generalizadoThis paper investigates whether the adoption of good corporate governance practices influences the market value of Brazilian firms. For this purpose, we used an unbalanced panel over the period from 2002 to 2010, composed of 233 listed nonfinancial companies, for a total of 1,110 observations. Because of endogeneity problems such as omitted variables, simultaneity and the feedback effect, we employed dynamic multiple linear regression models, estimated by the systemgeneralized method of moments (System GMM). The results indicate that firms listed in one of the three premium corporate governance segments of the BM&FBovespa (Level 1, Level 2 and Novo Mercado) are priced higher by the market compared to firms listed in the traditional trading segment. Therefore, corporate governance has a positive effect on the market value of Brazilian firms.O presente estudo teve como objetivo investigar se a adoção de boas práticas de governança corporativa influencia o valor de mercado das companhias brasileiras. Para tanto, utilizou-se um painel não balanceado do período de 2002 a 2010, composto por 233 empresas não financeiras de capital aberto, o qual totalizou 1110 observações. Em virtude dos problemas de endogeneidade como a omissão de variáveis, a simultaneidade e o efeito feedback, foramempregados modelos dinâmicos de regressão linear múltipla, estimados pelo Método dos Momentos Generalizado Sistêmico (MMG-Sis). Os resultados da pesquisa indicam que as organizações que participam de um dos três segmentos de governança corporativa da BM&FBovespa (N1, N2 e NM) são mais valorizadas pelo mercado, quando comparadas com as empresas listadas no segmento tradicional. Destarte, constatou-se que a governança corporativa impacta positivamente sobre o valor de mercado das firmas.FUCAPE Business Shool2014-01-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPeer-reviewed ArticleArtigo revisado pelos paresapplication/pdfapplication/pdfhttp://www.bbronline.com.br/index.php/bbr/article/view/35510.15728/bbr.2014.11.1.5Brazilian Business Review; Vol. 11 No. 1 (2014): January to February 2014; 90-110Brazilian Business Review; v. 11 n. 1 (2014): Janeiro a Fevereiro de 2014; 90-1101808-23861807-734Xreponame:BBR. Brazilian Business Review (English edition. Online)instname:Fucape Business School (FBS)instacron:FBSengporhttp://www.bbronline.com.br/index.php/bbr/article/view/355/539http://www.bbronline.com.br/index.php/bbr/article/view/355/540Caixe, Daniel FerreiraKrauter, Elizabethinfo:eu-repo/semantics/openAccess2018-11-06T19:51:15Zoai:ojs.pkp.sfu.ca:article/355Revistahttps://www.bbronline.com.br/index.php/bbr/indexONGhttp://www.bbronline.com.br/index.php/bbr/oai|| bbronline@bbronline.com.br1808-23861808-2386opendoar:2018-11-06T19:51:15BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)false
dc.title.none.fl_str_mv The Relation between corporate governance and market value: mitigating endogeneity Problems
Relação entre governança corporativa e valor de mercado: mitigando problemas de endogeneidade
title The Relation between corporate governance and market value: mitigating endogeneity Problems
spellingShingle The Relation between corporate governance and market value: mitigating endogeneity Problems
Caixe, Daniel Ferreira
Corporate governance
Market value
Generalized method of moments
Governança corporativa
Valor de mercado corporativo
Método dos momentos generalizado
title_short The Relation between corporate governance and market value: mitigating endogeneity Problems
title_full The Relation between corporate governance and market value: mitigating endogeneity Problems
title_fullStr The Relation between corporate governance and market value: mitigating endogeneity Problems
title_full_unstemmed The Relation between corporate governance and market value: mitigating endogeneity Problems
title_sort The Relation between corporate governance and market value: mitigating endogeneity Problems
author Caixe, Daniel Ferreira
author_facet Caixe, Daniel Ferreira
Krauter, Elizabeth
author_role author
author2 Krauter, Elizabeth
author2_role author
dc.contributor.author.fl_str_mv Caixe, Daniel Ferreira
Krauter, Elizabeth
dc.subject.por.fl_str_mv Corporate governance
Market value
Generalized method of moments
Governança corporativa
Valor de mercado corporativo
Método dos momentos generalizado
topic Corporate governance
Market value
Generalized method of moments
Governança corporativa
Valor de mercado corporativo
Método dos momentos generalizado
description This paper investigates whether the adoption of good corporate governance practices influences the market value of Brazilian firms. For this purpose, we used an unbalanced panel over the period from 2002 to 2010, composed of 233 listed nonfinancial companies, for a total of 1,110 observations. Because of endogeneity problems such as omitted variables, simultaneity and the feedback effect, we employed dynamic multiple linear regression models, estimated by the systemgeneralized method of moments (System GMM). The results indicate that firms listed in one of the three premium corporate governance segments of the BM&FBovespa (Level 1, Level 2 and Novo Mercado) are priced higher by the market compared to firms listed in the traditional trading segment. Therefore, corporate governance has a positive effect on the market value of Brazilian firms.
publishDate 2014
dc.date.none.fl_str_mv 2014-01-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
Artigo revisado pelos pares
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://www.bbronline.com.br/index.php/bbr/article/view/355
10.15728/bbr.2014.11.1.5
url http://www.bbronline.com.br/index.php/bbr/article/view/355
identifier_str_mv 10.15728/bbr.2014.11.1.5
dc.language.iso.fl_str_mv eng
por
language eng
por
dc.relation.none.fl_str_mv http://www.bbronline.com.br/index.php/bbr/article/view/355/539
http://www.bbronline.com.br/index.php/bbr/article/view/355/540
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv FUCAPE Business Shool
publisher.none.fl_str_mv FUCAPE Business Shool
dc.source.none.fl_str_mv Brazilian Business Review; Vol. 11 No. 1 (2014): January to February 2014; 90-110
Brazilian Business Review; v. 11 n. 1 (2014): Janeiro a Fevereiro de 2014; 90-110
1808-2386
1807-734X
reponame:BBR. Brazilian Business Review (English edition. Online)
instname:Fucape Business School (FBS)
instacron:FBS
instname_str Fucape Business School (FBS)
instacron_str FBS
institution FBS
reponame_str BBR. Brazilian Business Review (English edition. Online)
collection BBR. Brazilian Business Review (English edition. Online)
repository.name.fl_str_mv BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)
repository.mail.fl_str_mv || bbronline@bbronline.com.br
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