The Influence of Equity Markets on Firm Financial Performance

Abstract

Purpose – This paper develops a discussion leading on from a paper relating the influence of capital markets combined with board structure/composition/committees and remuneration and corporate governance on the financial performance of a public listed corporation.

Design/methodology/approach – This study entails common and codified law legal systems including; Australia, The United States of America and The United Kingdom, France, Germany and Italy. The data collected is from 350 public listed corporations from 2000 – 2006 for the development of multivariate regression models for parametric data.

These developed models are constructed to test relationships between dependant and independent variables in line with research questions and hypotheses.

Findings – The findings found that there were a mixture of results in unitary board structures in common and dual board structures codified law legal systems.

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: Equity Markets, Firm Performance, Board Remuneration, Board Composition, Corporate Governance, Board Structure, Board Committees, Capital Markets

JEL Classification: D21, D22, D31, D79, G35, L25, M41