Corporate Governance, Investment, and Firm Valuation in Asian Emerging Markets

Stephen Y L CHEUNG*, Aristotelis STOURAITIS, Weiqiang TAN

*Corresponding author for this work

Research output: Contribution to journalJournal articlepeer-review

17 Citations (Scopus)


We investigate the effects of corporate governance and family ownership on firm valuation through investment efficiency in Asian emerging markets. Using 3 years of time series data from the Credit Lyonnais Securities Asia corporate governance score for 10 Asian emerging markets, we find that good corporate governance leads to better or more efficient investment decisions and eventually to higher firm value. We also find that investors reward firms for improvement in corporate governance. The findings do not hold for Asian firms with a family or concentrated ownership structure. The results are not driven by changes in accounting standards in these markets.

Original languageEnglish
Pages (from-to)246-273
Number of pages28
JournalJournal of International Financial Management and Accounting
Issue number3
Publication statusPublished - Sept 2011

Scopus Subject Areas

  • Accounting
  • Business, Management and Accounting (miscellaneous)
  • Finance


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