The latest publication of the BRQ Business
Research Quaterly Journal, num. 19(04) includes an article titled “On the relationship between corporate
governance and value creation in an economic crisis: Empirical evidence for the
Spanish case”. This article was written by Santiago Lago-Peñas, Elena Rivo
(both GEN researchers) and Mónica Villanueva-Villar (University of Vigo).
This paper analyses the effect of
corporate governance on value creation. It relies upon a dataset that includes
the companies listed on the Spanish Stock Exchange for the period from 2005 to
2012. Attention is focused on the structure and composition of boards. In
particular, four variables are analyzed: the size, independence of board
members and their diligence (measured by the number of meetings), and the
duality between chairman and chief executive officer.
Over the period of the deepest
economic crisis (2009–2012), the most significant variables that had a positive
effect on value creation were independence and size. Hence, the global
financial crisis has highlighted the need for effective corporate governance.
Policy makers should think about translating the recommendations of the Good
Governance Codes into legislation (mandatory), to improve corporate governance.
More information available on BRQ Business Research Quaterly
