OpenAIR @ RGU >
Business >
Management >
Journal articles (Management) >

Please use this identifier to cite or link to this item:
This item has been viewed 544 times in the last year. View Statistics

Files in This Item:

File Description SizeFormat
JBFA2000 Phil accepted.pdf140.25 kBAdobe PDFView/Open
Title: Internal and external governance mechanisms: their impact on the performance of large UK public companies.
Authors: Weir, Charlie
Laing, David
McKnight, Philip J.
Keywords: Corporate governance
Internal and external mechanisms
Issue Date: Jun-2002
Publisher: Blackwell
Citation: WEIR, C., LAING, D. and McKNIGHT, P. J., 2002. Internal and external governance mechanisms: their impact on the performance of large UK public companies. Journal of Business Finance and Accounting, 29 (5-6), pp. 579-611.
Abstract: This paper analyses the relationship between internal and external corporate governance mechanisms and the performance of UK companies within the context of the Cadbury Committee's Code of Best Practice. The results show, first, that the market for corporate control is an effective governance mechanism that may be regarded as a substitute for the other mechanisms. Second, there is a weak relationship between the internal governance mechanisms and performance. Third, there is also little evidence that with firms in the top and bottom performance deciles have different internal governance characteristics. The results therefore raise questions about the efficacy of imposing prescriptive internal governance mechanisms on companies, particularly given that the market for corporate control has been shown to be an effective means of reducing agency costs.
ISSN: 0306-686X
Appears in Collections:Journal articles (Management)

All items in OpenAIR are protected by copyright, with all rights reserved.


   Disclaimer | Freedom of Information | Privacy Statement |Copyright ©2012 Robert Gordon University, Garthdee House, Garthdee Road, Aberdeen, AB10 7QB, Scotland, UK: a Scottish charity, registration No. SC013781