Divergence of opinion causes market prices to differ from intrinsic values. Greater divergence of opinion results in larger bid/ask spreads. This study utilizes Miller’s theory (Miller, 1977) which states that differences between bid and ask prices (price spread) is caused by divergence...

The study adjusts Pulic’s (2000) intellectual capital approach, “Value Added Intellectual Coefficient (VAICTM), to measure firms’ value creation and market performance. The research here adds two new intellectual capital components, Research and Development (R&D) expenditure...

A firm's diversification decision is likely to be a response of two interacting effects, one is the agent problem and the other is the economies of scale. Whether diversification causes a discount or a premium depends on the interaction of the two effects. This paper re-evaluates the effect of...

Considerable empirical evidence suggests that firm’s time equity issues to market movements and that this behavior impacts capital structures. Based on a survey of investigations of this phenomenon, this study observes capital structures in different financial markets and identifies...

In this paper, we study the long-run operating performance of preferred stock issuers. We use three different measures of operating performance; pre-tax cash flows, profit margin and return on assets. We study the performance of industrial firms, financial firms, and utilities separately, as well...

This paper investigates the relationship between performance and corporate governance in Palestine. Firm performance is measured by Tobin’s Q, whereas corporate governance is determined based on the level of ownership concentration. Prior research in developed economies provides evidence...

This chapter examines the relation between corporate governance mechanisms and operating performance and liquidity risk within the specific environment of West African Economic and Monetary Union (WAEMU) banks. The implementation of well-known western corporate governance mechanisms in emerging...

Investor demand for well-governed companies has steadily increased over the past decades, thus strengthening the role market incentives can play in improving corporate governance. Specifically in emerging markets though, where legal and regulatory frameworks for corporate governance often lag,...

Market globalization has caused significant changes in rules, recommendations and corporate governance practices. For the continuous improvement of corporate governance in the European countries, the audit committee has a key role in stakeholder protection (Dir. 2006/43/CE). The chapter aims at...

This chapter examines the relationship between corporate governance and corporate social responsibility (CSR) reporting in annual report in the context of an emerging country, Bangladesh. Corporate governance is measured using an index consisting of 134 dichotomous elements. The extent of CSR...