Publication detail

Does corporate governance affect the market value and risk of Czech joint-stock companies?

ŠIMBEROVÁ, I. KOCMANOVÁ, A. PAVLÁKOVÁ DOČEKALOVÁ, M. ŠKAPA, S.

Original Title

Does corporate governance affect the market value and risk of Czech joint-stock companies?

Type

conference paper

Language

English

Original Abstract

The paper analyses the relationships and impacts between Good Corporate Governance (GC and the Firm Market Value and the Firm Risk, including Financial Performance in the companies of the processing industry. Empirical research has been verified in 118 joint-stock companies in the Czech Republic with the number of employees over 250 according to the EU criterion. Data was acquired by empirical research in the Czech Republic which was completed in 2012-2016. The aim of the paper is to propose a suitable model of Good Corporate Governance for unlisted Czech companies in the Czech Republic and to identify its impacts on the Firm Market Value, the Firm Risk and the Financial Performance. The methodology of research is based on modelling, using the structural equation modelling (SEM) for modelling the interrelationships and impacts between the GCG performance, the Firm Market Value, the Firm Risk and the Financial Performance. The empirical research has shown that responsible corporate governance has an impact on the Firm Market Value, both through the financial performance and through the stable risk. The investors are thus suggested that if good corporate governance and regulatory measures are introduced, thereby strengthening the corporate financial performance and the stable Firm Risk, then it will have a significant impact on the Firm Market Value.

Keywords

Corporate governance model, Firm Market Value, Firm Risk, Financial Performance model, Confirmative Factor Analysis, Structural Equations.

Authors

ŠIMBEROVÁ, I.; KOCMANOVÁ, A.; PAVLÁKOVÁ DOČEKALOVÁ, M.; ŠKAPA, S.

Released

12. 3. 2019

Publisher

International Institute of Informatics and Systemics

Location

Orlando, Florida, USA

ISBN

978-1-941763-96-4

Book

IMCIC 19 Proceeding, Volume I

Edition

I

Edition number

1

Pages from

29

Pages to

34

Pages count

6

BibTex

@inproceedings{BUT157994,
  author="Iveta {Šimberová} and Alena {Kocmanová} and Marie {Pavláková Dočekalová} and Stanislav {Škapa}",
  title="Does corporate governance affect the market value and risk of Czech joint-stock companies?",
  booktitle="IMCIC 19 Proceeding, Volume I",
  year="2019",
  series="I",
  number="1",
  pages="29--34",
  publisher="International Institute of Informatics and Systemics",
  address="Orlando, Florida, USA",
  isbn="978-1-941763-96-4"
}