Corporate governance, investment, and firm valuation in Asian emerging markets

Yan Leung Stephen CHEUNG, Aris STOURAITIS, Weiqiang TAN

Research output: Contribution to journalArticle

8 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. Copyright © 2011 Blackwell Publishing Ltd.
Original languageEnglish
Pages (from-to)246-273
JournalJournal of International Financial Management and Accounting
Issue number3
Publication statusPublished - 2011


Corporate governance
Firm valuation
Asian emerging markets
Family ownership
Concentrated ownership
Time series data
Firm value
Ownership structure
Investment decision
Accounting standards
Investment efficiency


Cheung, Y.-L., Stouraitis, A., & Tan, W. (2011). Corporate governance, investment, and firm valuation in Asian emerging markets. Journal of International Financial Management & Accounting, 22(3), 246-273. doi: 10.1111/j.1467-646X.2011.01051.x