The examination of the influence of firm’s level CG on market capitalization is potentially important for managers to improve CG system in context of Bangladesh. The linear relationship between CG and market capitalization is recognized at one percent level of significance. A positive and significant relationship between board independence and market capitalization is identified. On the other hand, a negative and significant relationship between public ownership and market capitalization is detected by the model. The present practice of CG does not capable to bring back the eroded confidence of external shareholders. The study recommend some steps for improve the situation such as at least two independent directors or one-third whichever is higher, mandatory training for directors to improve their mindset, introduce audit review system, introduce VFM review mechanism, establishing a high powered financial reporting council (FRC) and so on.
| Published in | Journal of Investment and Management (Volume 4, Issue 4) |
| DOI | 10.11648/j.jim.20150404.14 |
| Page(s) | 119-131 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2015. Published by Science Publishing Group |
Corporate Governance, Market Capitalization, Board Independence, Family Ownership, Capital Market
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APA Style
Md Shamimul Hasan, Normah Omar. (2015). The Impact of Firm’s Level Corporate Governance on Market Capitalization. Journal of Investment and Management, 4(4), 119-131. https://doi.org/10.11648/j.jim.20150404.14
ACS Style
Md Shamimul Hasan; Normah Omar. The Impact of Firm’s Level Corporate Governance on Market Capitalization. J. Invest. Manag. 2015, 4(4), 119-131. doi: 10.11648/j.jim.20150404.14
AMA Style
Md Shamimul Hasan, Normah Omar. The Impact of Firm’s Level Corporate Governance on Market Capitalization. J Invest Manag. 2015;4(4):119-131. doi: 10.11648/j.jim.20150404.14
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Download@article{10.11648/j.jim.20150404.14,
author = {Md Shamimul Hasan and Normah Omar},
title = {The Impact of Firm’s Level Corporate Governance on Market Capitalization},
journal = {Journal of Investment and Management},
volume = {4},
number = {4},
pages = {119-131},
doi = {10.11648/j.jim.20150404.14},
url = {https://doi.org/10.11648/j.jim.20150404.14},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20150404.14},
abstract = {The examination of the influence of firm’s level CG on market capitalization is potentially important for managers to improve CG system in context of Bangladesh. The linear relationship between CG and market capitalization is recognized at one percent level of significance. A positive and significant relationship between board independence and market capitalization is identified. On the other hand, a negative and significant relationship between public ownership and market capitalization is detected by the model. The present practice of CG does not capable to bring back the eroded confidence of external shareholders. The study recommend some steps for improve the situation such as at least two independent directors or one-third whichever is higher, mandatory training for directors to improve their mindset, introduce audit review system, introduce VFM review mechanism, establishing a high powered financial reporting council (FRC) and so on.},
year = {2015}
}
TY - JOUR T1 - The Impact of Firm’s Level Corporate Governance on Market Capitalization AU - Md Shamimul Hasan AU - Normah Omar Y1 - 2015/08/11 PY - 2015 N1 - https://doi.org/10.11648/j.jim.20150404.14 DO - 10.11648/j.jim.20150404.14 T2 - Journal of Investment and Management JF - Journal of Investment and Management JO - Journal of Investment and Management SP - 119 EP - 131 PB - Science Publishing Group SN - 2328-7721 UR - https://doi.org/10.11648/j.jim.20150404.14 AB - The examination of the influence of firm’s level CG on market capitalization is potentially important for managers to improve CG system in context of Bangladesh. The linear relationship between CG and market capitalization is recognized at one percent level of significance. A positive and significant relationship between board independence and market capitalization is identified. On the other hand, a negative and significant relationship between public ownership and market capitalization is detected by the model. The present practice of CG does not capable to bring back the eroded confidence of external shareholders. The study recommend some steps for improve the situation such as at least two independent directors or one-third whichever is higher, mandatory training for directors to improve their mindset, introduce audit review system, introduce VFM review mechanism, establishing a high powered financial reporting council (FRC) and so on. VL - 4 IS - 4 ER -
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