Market Capitalisation Influence on Boards?
Posted: 7 Dec 2011 Last revised: 11 Jul 2014
Date Written: December 7, 2011
Abstract
Purpose – This paper develops a discussion looking at the correlation between Market Capitalisation and the performance of the board of directors.
Design/methodology/approach – This study entails Australia, the United States of America and the United Kingdom. The data collected is from public listed corporations from 2000–2012 for the development of multivariate regression models for parametric data. These developed models are constructed to test relationships between dependent and independent variables in line with research questions and hypotheses.
Findings – The findings found that there is a high correlation using the adjusted R2 measure between revenue and profit.
Originality/value – The paper will be of vital importance to other academics looking at this question, and to both public and private sector entities.
Keywords: market capitalisation, board, directors
JEL Classification: D21, D22, D31, D79, G35, L25, M41
Suggested Citation: Suggested Citation