BOARD EFFECTIVENESS AND FIRM VALUE: A MEDIATING ROLE OF STOCK LIQUIDITY

被引：1
|
作者：
Rehman, Ramiz Ur [1 ]
Naseem, Muhammad Akram [2 ]
Hasan, Mudassar [3 ]
Ahmad, Muhammad Ishfaq [2 ]
Demir, Ender [4 ]
机构：
[1] Sohar Univ, Fac Business, Sohar, Oman
[2] Univ Lahore, Lahore Business Sch, Lahore 54000, Pakistan
[3] Teesside Univ, Int Business Sch, Middlesbrough TS1 3BX, England
[4] Reykjavik Univ, Sch Social Sci, Dept Business Adm, Menntavegur 1, IS-102 Reykjavik, Iceland
来源：
SINGAPORE ECONOMIC REVIEW | 2023年
关键词：
Effective board index; Amihud illiquidity; Corwin Schultz liquidity spread; firm value; Pakistan; BID-ASK SPREADS; CORPORATE GOVERNANCE; MARKET LIQUIDITY; ASYMMETRIC INFORMATION; PERFORMANCE EVIDENCE; INDEPENDENCE; OWNERSHIP; ILLIQUIDITY; VALUATION; RETURNS;
D O I：
10.1142/S0217590823500261
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
We test whether an effective board affects firm value (FV) in Pakistan and whether stock liquidity (LIQ) mediates this relationship. To test this conjecture, we introduce an effective board index (EBI) using board size, board independence, board diversity and CEO duality. By employing the fixed effect model, we find that an effective board reduces agency costs and thus increases FV. An effective board may signal investors positively regarding reduced information asymmetry, thereby increasing stock LIQ. Furthermore, stock LIQ partially mediates the relationship between the effective board and FV. However, only Amihud illiquidity mediates this relationship, which suggests the stock liquidity's estimation matters.
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页数：21
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