Template-Type: ReDIF-Article 1.0 Author-Name: B. Rajesh Kumar Author-X-Name-First: B. Rajesh Author-X-Name-Last: Kumar Author-Name: K.S. Sujit Author-X-Name-First: K.S. Author-X-Name-Last: Sujit Title: Do corporate governance initiatives lead to firm performance or vice versa? A cause-and-effect analysis Abstract: The study examines if strong corporate governance initiatives lead to wealth creation for firms or do firms with superior performance tend to adopt strong corporate governance initiatives. The study uses the 3SLS system estimation based on a sample of 4,888 firms. The direction of causality is from corporate governance initiatives to valuation effects. Investments by strategic investors in a firm is a determinant of value creation for the firm. Firms with high agency costs tend to adopt more initiatives for best corporate governance practices. Firms with strong measures for shareholder equality treatment and anti-takeover defence mechanisms have a large concentration of shareholder holding by investors. The implication of the finding that good corporate governance leads to improved valuation is that firms can focus on investments in strong corporate practices for value creation while policymakers can create an environment for sustainable initiatives by supporting optimal corporate governance practices. Journal: Int. J. of Corporate Governance Pages: 27-63 Issue: 1 Volume: 13 Year: 2022 Keywords: corporate governance; wealth creation; governance initiatives; institutional holdings; agency costs. File-URL: http://www.inderscience.com/link.php?id=124761 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:13:y:2022:i:1:p:27-63 Template-Type: ReDIF-Article 1.0 Author-Name: Pankaj Gupta Author-X-Name-First: Pankaj Author-X-Name-Last: Gupta Author-Name: Yogesh Maheshwari Author-X-Name-First: Yogesh Author-X-Name-Last: Maheshwari Title: Propping today, tunnelling tomorrow: expropriation motives and firm performance Abstract: The purpose of this paper is to examine propping and tunnelling in group firms which have booked losses and performed badly in past years. We offer partial explanation to the group survival puzzle; that under institutional motivations such as avoidance of delisting and refinancing risks, group firms witness tunnelling subsequent to propping and thereby expropriate public shareholders in the long run. Our results confirm that tunnelling happens typically after prior propping up. Additionally, the paper analyses the effect of propping and tunnelling on current and future operating performance respectively. The findings exhibit that propping affects the current year's operating performance of the firm positively, while tunnelling affects the performance in future years. The findings of this study will help public shareholders to better assess risk and return while investing in group firms. Also, the study can be used as a reference by regulatory bodies when making policies to curb such expropriating activities. Journal: Int. J. of Corporate Governance Pages: 84-101 Issue: 1 Volume: 13 Year: 2022 Keywords: business groups; propping; tunnelling; delisting risk; refinancing risk; firm performance. File-URL: http://www.inderscience.com/link.php?id=124762 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:13:y:2022:i:1:p:84-101 Template-Type: ReDIF-Article 1.0 Author-Name: Amarjit Gill Author-X-Name-First: Amarjit Author-X-Name-Last: Gill Author-Name: Afshin Amiraslany Author-X-Name-First: Afshin Author-X-Name-Last: Amiraslany Author-Name: Harvinder S. Mand Author-X-Name-First: Harvinder S. Author-X-Name-Last: Mand Author-Name: Pritpal S. Bhullar Author-X-Name-First: Pritpal S. Author-X-Name-Last: Bhullar Title: Impact of family control on bank financing and the cost of debt: evidence from Canadian survey data Abstract: This study intends to investigate the impact of family control on bank financing and the cost of debt by utilising a survey research design to collect survey data. Canadian small family business owners were asked about their perceptions of family ownership, family members' firm management, CEO duality, bank financing, and debt cost. Our empirical analysis shows that family members' higher level of family ownership and firm management increases bank financing and decreases the cost of debt. A three-stage least square regressions show that family control/governance decreases the cost of debt through bank financing access. Thus, family control/governance plays a role in increasing bank financing and reducing debt costs for Canadian small family business firms. The results contribute to the literature on the relations between family control, bank financing, and debt cost. This study may motivate research scholars to develop further studies on family control/governance and the cost of capital. Journal: Int. J. of Corporate Governance Pages: 64-83 Issue: 1 Volume: 13 Year: 2022 Keywords: family control; family ownership; bank financing; cost of debt; Canada. File-URL: http://www.inderscience.com/link.php?id=124773 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:13:y:2022:i:1:p:64-83 Template-Type: ReDIF-Article 1.0 Author-Name: Geeta Rani Duppati Author-X-Name-First: Geeta Rani Author-X-Name-Last: Duppati Author-Name: Anne Christine D'Arcy Author-X-Name-First: Anne Christine Author-X-Name-Last: D'Arcy Author-Name: Robert Faff Author-X-Name-First: Robert Author-X-Name-Last: Faff Author-Name: Neha Matlani Author-X-Name-First: Neha Author-X-Name-Last: Matlani Title: Effects of institutional investor ownership on innovation Abstract: This study examines the effects of institutional investor ownership (IIO) on innovation. First, we investigate whether IIO influences firm innovation. Second, we examine whether the stage of economic development influences the effects of IIO on innovation. Then we further investigate the role of IIO type and country level governance and legal framework on the relationship between the IIO and innovation in OECD and emerging economies. Using panel data of firms listed on the NYSE/NASDAQ, we find that the institutional investors significantly increase firm innovation. Our results further show that country-level governance and legal system interact with institutional ownership and affect corporate innovation. We find that country-level governance and legal system are the important institutional features that affect the relationship between institutional ownership and innovation. Furthermore, IIO in developed economies with common law traditions affects innovation positively and civil law traditions work well for developing economies. Journal: Int. J. of Corporate Governance Pages: 1-26 Issue: 1 Volume: 13 Year: 2022 Keywords: institutional ownership; innovation; economic development. File-URL: http://www.inderscience.com/link.php?id=124785 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:13:y:2022:i:1:p:1-26