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Corporate governance and turnaround: Evidence from Australia
- Source :
- Australian Journal of Management; November 2020, Vol. 45 Issue: 4 p549-578, 30p
- Publication Year :
- 2020
-
Abstract
- We examine the relationship between ownership and outside director attributes and corporate turnaround outcomes using matched samples of 99 turnaround and 99 non-turnaround listed Australian firms during the 2004–2015 period. Based on agency theory principles, we propose that key shareholder groups (block ownership, director ownership, institutional ownership) and outside directors are related to firm-level turnaround outcomes, and particularly changes in these attributes across decline to turnaround periods. Our results provide evidence that turnaround and non-turnaround firms differ in terms of their ownership and board composition structures, and that changes in director ownership and the degree of board independence are important in determining the likelihood of turnaround success.JEL Classification: G33, G34, M40
Details
- Language :
- English
- ISSN :
- 03128962 and 13272020
- Volume :
- 45
- Issue :
- 4
- Database :
- Supplemental Index
- Journal :
- Australian Journal of Management
- Publication Type :
- Periodical
- Accession number :
- ejs53026934
- Full Text :
- https://doi.org/10.1177/0312896220902225