Governance and firm value

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dc.contributor.author Dah, Mustafa A.
dc.date.accessioned 2016-11-25T09:34:15Z
dc.date.available 2016-11-25T09:34:15Z
dc.date.copyright 2016 en_US
dc.date.issued 2016-11-25
dc.identifier.issn 0275-5319 en_US
dc.identifier.uri http://hdl.handle.net/10725/4856 en_US
dc.description.abstract This paper examines the relationship between the firm's governance structure and its value during different economic conditions. We show that both relative industry turnover and CEO entrenchment increase during economic downturns. We also find that relative industry turnover and managerial entrenchment have opposite impacts on the value of the firm throughout the recessionary period. While industry turnover leads to an appreciation in firm value, managerial entrenchment reduces shareholders’ wealth. The negative impact of managerial entrenchment on firm value, however, outweighs the positive impact of industry turnover. Accordingly, we propose that a recession provides managers with a good opportunity to camouflage their behavior and extract more private benefits and, thus, blame the poor performance on bad economic conditions. en_US
dc.language.iso en en_US
dc.title Governance and firm value en_US
dc.type Article en_US
dc.description.version Published en_US
dc.title.subtitle the effect of a recession en_US
dc.author.school SOB en_US
dc.author.idnumber 200104725 en_US
dc.author.department Department of Economics (ECON) en_US
dc.description.embargo N/A en_US
dc.relation.journal Research in International Business and Finance en_US
dc.journal.volume 37 en_US
dc.article.pages 464-476 en_US
dc.identifier.doi http://dx.doi.org/10.1016/j.ribaf.2016.01.013 en_US
dc.identifier.ctation Dah, M. A. (2016). Governance and firm value: The effect of a recession. Research in International Business and Finance, 37, 464-476. en_US
dc.author.email mustafa.dah@lau.edu.lb en_US
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php en_US
dc.identifier.url http://www.sciencedirect.com/science/article/pii/S0275531916300137 en_US
dc.author.affiliation Lebanese American University en_US

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