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The International Journal of Applied Economics and Finance
  Year: 2011 | Volume: 5 | Issue: 3 | Page No.: 237-244
DOI: 10.3923/ijaef.2011.237.244
The Relationship Between Corporate Governance and Value of the Firm in Developing Countries: Evidence from Bangladesh
Md. Abdur Rouf

Abstract:
This study aimed to examine the relationship between four corporate governance mechanisms (board size, board independent director, chief executive officer duality and board audit committee) and value of the firm (performance) measures (return on assets, ROA and return on equity, ROE). The study is based on a sample of 93 listed non-financial companies in Dhaka Stock Exchanges (DSE) 2006. Using OLS as a method of estimation, the results provide evidence of a positive significant relationship between ROA and board independent director as well as chief executive officer duality. The results further reveal a positive significant relationship between ROE and board independent director as well as chief executive officer duality. The study, however, could not provide a significant relationship between the value of the firm measures (ROA and ROE) and board size and board audit committee.
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COMMENTS
13 May, 2011
Prof. Dr. M. Akhtar Uddin:
This work is original and exceptional in the view of Bangladesh
 
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