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
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
Recommended Citation
Maliksi, K. H., Piczon, M. Y., & See Dee, H. D. (2008). 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. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/5818