Firm value effects of leverage, CEO duality, audit committee establishment and percentage of independent directors : a study on selected companies listed in the Philippine stock exchange

Date of Publication

2008

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Accountancy

Subject Categories

Accounting

College

Ramon V. Del Rosario College of Business

Department/Unit

Accountancy

Defense Panel Chair

Arnel Onesimo O. Uy

Defense Panel Member

Aaron C. Escartin

Abstract/Summary

Corporate governance plays a critical role in monitoring and controlling the operations of a firm yet its application has been an issue in developing markets such as the Philippines. This paper studies the firm value effects of leverage, CEO duality, audit committee establishment and percentage of independent directors of 134 listed companies in the Philippine Stock Exchange, finding that with the use of OLS, only leverage and percentage of independent directors significantly impact a firm's value out of the four corporate governance aspects aforementioned. Furthermore, the research paper also examines the overall impact of corporate governance score on firm valuation while controlling for any simultaneous relationship that exists between the two. Through the use 2 stage least squares (2SLS), it was found out that corporate governance has no significant impact on firm valuation. Possible underlying reasons for the insignificant impact of corporate governance on firm valuation and suggestion for future research are also discussed.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU13266

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

139 leaves: ill.; 28 cm.

Keywords

Chief executive officers -- Philippines; Leadership; Success in business -- Philippines

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