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Journal of Management and Business Research, 2013
30（ 5 ）：385-405
DOI： 10.6504/JOM.2013.30.05.01 |
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| Analyzing the Advantage to Corporate Governance on an Input View |
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| Providing input in corporate governance and enhancing supervisory mechanisms may incur relevant costs. Thus, previous studies on corporate governance measures have promoted both supporting and opposing opinions regarding benefit. Whether substantial input in corporate governance enables management authorities to maximize shareholder profits has yet to be confirmed. From the perspective of input, this study proposes using the PCG-index for assessing samples at a low level of corporate governance input after controlling the conditions of extant firm value. The empirical results show that, the samples of corporate governance input exhibiting a positive attitude yield significantly superior long-term performance to that exhibiting a passive attitude. These results remain constant regardless of whether the sampling period is shortened or the operational factors of the PCG-index are altered. During the overall sampling period, this study observed optimal conditions at an appropriate level of input. When the PCG-index is within the middle range of the samples, the benefits and costs of corporate governance are balanced. |
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| Input, Corporate Governance, Index, Long-term Performance |
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