Melbourne Accounting Research Seminar - Assistant Professor Paige Patrick
Melbourne Accounting Research Seminar
The Spot Building
Deans Boardroom, Level 12
198 Berkeley St, Carlton
Gladys Lee and Like Jiang
Assistant Professor Paige Patrick from the University of Washington - Seattle will present a MARS seminar.
Topic: Investor-Driven Governance Standards and Firm Value
Abstract: Using a novel measure of corporate governance based on the stated preferences of a large group of institutional investors, we examine whether there are baseline corporate governance practices effective in generating value and improving performance across all firms. We find some evidence that firms that adhere more closely to these stated preferences have higher valuations. Our empirical measure of these preferences is also associated with more stringent monitoring. Taken together, our results suggest that such “minimum-fits-all” governance practices have a positive impact on firm value via more effective board oversight.