Yes / This paper investigates whether shareholder value is affected by non-compliance with the prescriptions of a principle-based ‘comply or explain’ sys-tem of corporate governance in the context of the global financial crisis of2007–2009. Using System Generalized Method of Moments estimates to controlfor different types of endogeneity, the main findings of this paper suggest thatnon-compliance with the UK Corporate Governance Code adversely affectsshareholder value. Furthermore, ex-post estimates reveal that compliance withcertain corporate governance mechanisms is more beneficial than others. Withregard to this, compliance with provisions related to board independence ismore important than complying with performance-related pay requirements ofthe code. These findings have implications for policy makers and financialinstitutions regarding the usefulness of compliance with a prescribed code ofcorporate governance, specifically during periods of financial distress.

The banking industry in India has undergone many phases in its history; evolving from a regulated, decentralised system in the early 1800’s, to a regulated, centralised system during British rule, to a nationalised system following India’s independence, and finally a combination of a nationalised and private system adopting global standards as it currently stands. This study has two main aims. Firstly, it will assess the relationship between the firm-specific determinants of capital structure, based on the prevailing literature, and the capital structure of public and private sector banks in India. Secondly, it will determine whether there is a difference in the firm-specific factors that contribute to the determination of the capital structure of public sector banks and private sector banks. This study adopts quantitative methods, similar to previous studies on the relationship between capital structure and its firm-specific determinants. The dependent variable, being total leverage, is regressed against multiple independent variables, being profitability, growth, firm size and credit risk (hereinafter referred to as “risk” unless otherwise indicated) in a multivariate linear regression model. This study adds to the current literature by applying the same firm-specific independent variables to the case of private and public sector banks and then to evaluate and compare the similarities and differences between the regression outputs. The results show that for private sector banks, all independent variables are statistically significant in explaining total leverage, where all the independent variables conform to the current literature on capital structure – profitability (-), firm size (-), growth (+) and credit risk (-). Conversely, for public sector banks, all independent variables were considered to be statistically significant, except for credit risk – profitability (-), firm size (+) and growth (+). These results imply that credit risk is not an important determination in a nationalised banks’ capital structure; thus, providing evidence for the moral hazard theory of public sector banks.

Made available in DSpace on 2015-03-05T18:57:21Z (GMT). No. of bitstreams: 0 Previous issue date: 29 / Nenhuma / O objetivo deste trabalho é analisar o mercado de capitais, a governança corporativa e as disposições das empresas mineiras e gaúchas, de médio e grande porte, a abrir o capital. Para tanto, utilizaremos o modelo logit sobre os bancos de dados originais de duas relevantes pesquisas: FIEMG et al. (2007) e FIERGS et al. (2008). Em especial, buscaremos determinar se as práticas de governança corporativa, adotadas pelas empresas, aumentam sua disposição em abrir o capital. Chegamos à conclusão de que a adoção de práticas de governança corporativa pelas empresas de capital fechado não é suficiente para determinar quais são as empresas com maior disposição à abertura de capital. No entanto, verificamos que a variável grau de compartilhamento de poder, elemento determinante de governança corporativa, encontra-se extremamente relacionada com esta disposição. / The goal of this study is to analyze the stock markets, the corporative governance and the likelihood of mining industries of Minas Gerais and Rio Grande do Sul, of medium and large dimension, of opening capital. For such, we will use the logit model of the original data bank from two relevant researches; FIEMG et al (2007) and FIERGS et al (2008). In special, we will attempt to determine if practicing corporative governance, adopted by these firms, increases its likelihood in opening capital. We have come upon the conclusion that adopting corporative governance by firms of closed capital is not sufficient to determine which industries are more susceptible to opening capital. However, we have verified that the degree of power sharing, determining element in corporative governance, finds itself extremely related to this likelihood.