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Do Corporate Governance Mechanisms Affect Public Transport Firm Value?

Author

Listed:
  • Ben Mohamed Ezzeddine

    (Qassim University)

  • Sami Jarboui

    (Faculty of Economics and Management)

Abstract

In this paper, we discuss how corporate governance affects a transport firm’s value. We derivate the optimal firm value Q* and compute the observed Q value; we then explain the shortfall (Q* − Q). To our knowledge, this is the first study that explains the distortion on transport firm value by internal governance mechanisms. Departing from 64 public road transport operators from 18 countries publicly traded during 2000–2011 using a parametric method, we empirically demonstrate that size of the board, board independence, CEO duality and CEO ownership can largely explain the distortion on transport firm value. The paper also provides an optimal corporate governance structure that can avoid such distortions.

Suggested Citation

  • Ben Mohamed Ezzeddine & Sami Jarboui, 2017. "Do Corporate Governance Mechanisms Affect Public Transport Firm Value?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(3), pages 916-928, September.
    • Handle: RePEc:spr:jknowl:v:8:y:2017:i:3:d:10.1007_s13132-015-0302-3
    DOI: 10.1007/s13132-015-0302-3
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    Cited by:

    1. Kaiyuan Yang & Xiaoyan Huo & Ruyi Li & Stavros Sindakis & Sakshi Aggarwal, 2024. "Analyzing Corporate Governance Model with Chinese Characteristics and Accounting Information Disclosure: a Quasi-natural Experimental Study Based on a Special Institutional Arrangement," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 9841-9865, June.
    2. Sami Jarboui, 2021. "Renewable energies and operational and environmental efficiencies of the US oil and gas companies: A True Fixed Effect model," Post-Print halshs-04233615, HAL.
    3. Sami Jarboui, 2022. "Operational and environmental efficiency of U.S. oil and gas companies towards energy transition policies: A comparative empirical analysis," Australian Economic Papers, Wiley Blackwell, vol. 61(2), pages 234-257, June.

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    More about this item

    Keywords

    Internal governance mechanisms; Transport firm value; Stochastic frontier approach;
    All these keywords.

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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