Abstract
Prior research on the relationship between corporate controls and firm performance is premised on the notion that, in theory, there is direct association between corporate governance and firm performance. However, extensive research has produced mixed and often weak results. In this paper, we posit, as a primary relationship, a negative association between growth and firm performance and then examine whether corporate governance variables moderate this negative relationship. Our results support this notion and show that the role of corporate governance variables in firm performance should be evaluated in the context of the firm's external environment measured in this study in terms of growth opportunities. © 2003 Elsevier B.V. All rights reserved.
| Original language | English |
|---|---|
| Pages (from-to) | 595-614 |
| Journal | Journal of Corporate Finance |
| Volume | 10 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - Sept 2004 |
Bibliographical note
Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].Research Keywords
- Agency theory
- Corporate governance
- Firm performance
- Investment opportunity set
Policy Impact
- Cited in Policy Documents
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