Location of Repository

Corporate Governance Best Practice and Stock Performance: Case of CEE Companies

By Jūlija Bistrova and Nataļja Lāce

Abstract

Corporate governance (CG) becomes a very essential factor to consider prior to investing in the company. A number of studies proved its importance on the developed equity markets. However, intuitively corporate governance should gain more importance due to high degree of uncertainty because of the unstable environment. In order to assess the influence of corporate governance quality on Central and Eastern European companies‟ stock performance, the CG assessment model, which includes 21 evaluation criteria, was developed. Based on the model rating, the companies with the highest CG quality (top 25%) outperformed companies with the worst CG quality (bottom 25%) by 0.98% on a monthly basis during the period of 2008 - 2010. Study demonstrate that companies with good CG quality are able to offer lower risk

Topics: corporate governance, information disclosure, board of directors, stock returns, management team
Publisher: International Institute of Informatics and Cybernetics
OAI identifier: oai:ortus.rtu.lv:14297
Sorry, our data provider has not provided any external links therefor we are unable to provide a PDF.

Suggested articles


To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.