The Influences of Corporate Governance Towards the Shareholder’s Value. an Empirical Study of Singapore

Project Paper Assignment (The influences of corporate governance towards the shareholder’s value. An empirical study of Singapore)

Table of Contents

Abstract 1

Chapter 1: Introduction 1

1.1 Background of the study 1

1.2 Problem Statement 2

1.3 Objective of the study 2

Chapter 2: Literature review 2

Chapter 3: Research and Methodology 3

3.1 Sample selection and Data Collection 3

3.2 Determinants of Variables 3

3.3 Models 5

3.5 Statement of Hypothesis 5

Chapter 4: Empirical results 6

4.1 Result of descriptive statistics 6

4.2 Result of correlation matrix 6

4.3 Result of regression 7

Chapter 5: Conclusion 8

References 9

Appendices 10

Appendix 1: Result of Descriptive Statistic 10

Appendix 2: Result of correlation matrix 10

Appendix 3: Result of Regression 11

Abstract

This paper helps to examine the relation between corporate governance and shareholders’ value. We took 22 publicly listed companies from Straits Times Index (STI) and using panel data estimation method to study the relationship. The annual reports and data was took from 2005 – 2014, at 10 years. We took CEO power variable as power index and Board Structure as our control variable to see whether this two variable will influence the shareholders’ value. Our results reveal that CEO – Chair Duality and Board composition will affect the shareholders’ value (EPS).

Keywords: CEO variables, Board Structure, Shareholders’ Value, Singapore.

Chapter 1: Introduction

1.1 Background of the study

Public always misunderstood the pictures of the board of directors, shareholders and owners. Perhaps the television programme had instil a different pictures to the public. These three parties could be different person in reality or can be a same person as well, or even holding two positions in the corporate. For a better understanding, Jensen & Meckling (1976) had clearly describe agency theory. Agency theory draws the picture of how the best organize connections in...