Endogeneity and the dynamics of internal corporate governance

被引：1654

作者：

Wintoki, M. Babajide ^{[1
]}

Linck, James S. ^{[2
]}

Netter, Jeffry M. ^{[3
]}

机构：

[1] Univ Kansas, Sch Business, Lawrence, KS 66045 USA

[2] So Methodist Univ, Edwin L Cox Sch Business, Dallas, TX 75275 USA

[3] Univ Georgia, Terry Coll Business, Athens, GA 30602 USA

来源：

JOURNAL OF FINANCIAL ECONOMICS | 2012年 / 105卷 / 03期

关键词：

Endogeneity; Corporate governance; Board structure; Board size; Board independence; Dynamic panel GMM estimator; INSTRUMENTAL VARIABLES ESTIMATION; PANEL-DATA; RATIONAL-EXPECTATIONS; BOARD SIZE; MANAGERIAL OWNERSHIP; FIRM PERFORMANCE; DETERMINANTS; MODELS; TESTS; RESTRICTIONS;

D O I：

10.1016/j.jfineco.2012.03.005

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We use a well-developed dynamic panel generalized method of moments (GMM) estimator to alleviate endogeneity concerns in two aspects of corporate governance research: the effect of board structure on firm performance and the determinants of board structure. The estimator incorporates the dynamic nature of internal governance choices to provide valid and powerful instruments that address unobserved heterogeneity and simultaneity. We re-examine the relation between board structure and performance using the GMM estimator in a panel of 6,000 firms over a period from 1991 to 2003, and find no causal relation between board structure and current firm performance. We illustrate why other commonly used estimators that ignore the dynamic relationship between current governance and past firm performance may be biased. We discuss where it may be appropriate to consider the dynamic panel GMM estimator in corporate governance research, as well as caveats to its use. (C) 2012 Elsevier B.V. All rights reserved.

引用

页码：581 / 606

页数：26

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