The influence of corporate governance on firm performance: Evidence from the US and the UK
Abstract After the outbreak of corporate scandals, many countries including the United States and the United Kingdom have paid more attention to governance practices and have carried out several governance reforms. The purpose of this paper is to explore the association between four important gov...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2020
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| Online Access: | https://eprints.nottingham.ac.uk/62405/ |
| _version_ | 1848799952909631488 |
|---|---|
| author | Li, Cong |
| author_facet | Li, Cong |
| author_sort | Li, Cong |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Abstract
After the outbreak of corporate scandals, many countries including the United States and the United Kingdom have paid more attention to governance practices and have carried out several governance reforms. The purpose of this paper is to explore the association between four important governance mechanisms including the size of the board, board composition, duality, and the number of audit committee meetings and the performance of listed firms in the US and the UK. ROA, ROE, and Tobin’s Q are used as measures of performance. We conduct the panel data analysis, covering the period 2006 to 2019. The regression results show that for both the US and the UK companies, the size of the board is positively linked to the performance. However, we find no association between board composition and company performance. Besides, our study indicates that the dual position is not significantly correlated with the performance, whereas the frequency of the audit committee meetings may weaken the performance of the US companies. We also find that the dual role of CEO / chairperson is closely related to the performance of the UK firms. When the CEO is the chairman of the board, Tobin’s Q is higher. Yet, the number of audit committee meetings is insignificant for all the models. |
| first_indexed | 2025-11-14T20:43:51Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-62405 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:43:51Z |
| publishDate | 2020 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-624052023-04-13T12:24:14Z https://eprints.nottingham.ac.uk/62405/ The influence of corporate governance on firm performance: Evidence from the US and the UK Li, Cong Abstract After the outbreak of corporate scandals, many countries including the United States and the United Kingdom have paid more attention to governance practices and have carried out several governance reforms. The purpose of this paper is to explore the association between four important governance mechanisms including the size of the board, board composition, duality, and the number of audit committee meetings and the performance of listed firms in the US and the UK. ROA, ROE, and Tobin’s Q are used as measures of performance. We conduct the panel data analysis, covering the period 2006 to 2019. The regression results show that for both the US and the UK companies, the size of the board is positively linked to the performance. However, we find no association between board composition and company performance. Besides, our study indicates that the dual position is not significantly correlated with the performance, whereas the frequency of the audit committee meetings may weaken the performance of the US companies. We also find that the dual role of CEO / chairperson is closely related to the performance of the UK firms. When the CEO is the chairman of the board, Tobin’s Q is higher. Yet, the number of audit committee meetings is insignificant for all the models. 2020-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/62405/1/20170696%20BUSI4020%20The%20influence%20of%20corporate%20governance%20on%20firm%20performance%EF%BC%9AEvidence%20from%20the%20US%20and%20the%20UK.pdf Li, Cong (2020) The influence of corporate governance on firm performance: Evidence from the US and the UK. [Dissertation (University of Nottingham only)] |
| spellingShingle | Li, Cong The influence of corporate governance on firm performance: Evidence from the US and the UK |
| title | The influence of corporate governance on firm performance: Evidence from the US and the UK |
| title_full | The influence of corporate governance on firm performance: Evidence from the US and the UK |
| title_fullStr | The influence of corporate governance on firm performance: Evidence from the US and the UK |
| title_full_unstemmed | The influence of corporate governance on firm performance: Evidence from the US and the UK |
| title_short | The influence of corporate governance on firm performance: Evidence from the US and the UK |
| title_sort | influence of corporate governance on firm performance: evidence from the us and the uk |
| url | https://eprints.nottingham.ac.uk/62405/ |