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dc.contributor.authorAkbar, Saeed
dc.contributor.authorPoletti-Hughes, J.
dc.contributor.authorEl-Faitouri, R.
dc.contributor.authorShah, S.Z.A.
dc.date.accessioned2019-06-12T12:07:05Z
dc.date.accessioned2019-06-20T10:56:14Z
dc.date.available2019-06-12T12:07:05Z
dc.date.available2019-06-20T10:56:14Z
dc.date.issued2016-09
dc.identifier.citationAkbar S, Poletti-Hughes J, El-Faitouri R et al (2016) More on the relationship between corporate governance and firm performance in the UK: Evidence from the application of generalized method of moments estimation. Research in International Business and Finance. 38: 417-429.en_US
dc.identifier.urihttp://hdl.handle.net/10454/17135
dc.descriptionYesen_US
dc.description.abstractThis study examines the relationship between corporate governance compliance and firm performance in the UK. We develop a Governance Index and investigate its impact on corporate performance after controlling for potential endogeneity through the use of a more robust methodology, Generalized Method of Moments (GMM) Estimation. Our evidence is based on a sample of 435 non-financial publicly listed firms over the period 1999–2009. In contrast to earlier findings in the UK literature, our results suggest that compliance with corporate governance regulations is not a determinant of corporate performance in the UK. We argue that results from prior studies showing a positive impact of corporate governance on firms’ performance may be biased as they fail to control for potential endogeneity. There may be a possibility of reverse causality in the results of prior studies due to which changes in the internal characteristics of firms may be responsible for the corporate governance compliance and performance relationship. Our findings are based on GMM, which controls for the effects of unobservable heterogeneity, simultaneity and dynamic endogeneity and thus present more robust conclusions as compared to the findings of previously published studies in this area.en_US
dc.language.isoenen_US
dc.relation.isreferencedbyhttps://doi.org/10.1016/j.ribaf.2016.03.009en_US
dc.rights© 2016 Elsevier B.V. All rights reserved. Reproduced in accordance with the publisher's self-archiving policy. This manuscript version is made available under the CC-BY-NC-ND 4.0 license.en_US
dc.subjectCorporate governanceen_US
dc.subjectGovernance indexen_US
dc.subjectFirm performanceen_US
dc.subjectEndogeneityen_US
dc.subjectGMMen_US
dc.titleMore on the relationship between corporate governance and firm performance in the UK: Evidence from the application of generalized method of moments estimationen_US
dc.status.refereedYesen_US
dc.date.Accepted2016-03-29
dc.date.application2016-04-23
dc.typeArticleen_US
dc.type.versionAccepted manuscripten_US
dc.date.updated2019-06-12T11:07:09Z
refterms.dateFOA2019-06-20T10:57:35Z


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