THE CORPORATE GOVERNANCE DRIVERS, PERFORMANCE AND RISK: EMPIRICAL EVIDENCE FROM ITALIAN CONTEXT

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Francesca Bernini ORCID logo, Giovanna Mariani ORCID logo, Delio Panaro

https://doi.org/10.22495/cocv11i1conf2p4

Abstract

In this work we carried out an empirical research on a sample of 98 Italian companies continuously listed during 2005-2011, with the objective of deepening the analysis : we tried to verify the role played by the Corporate on performance and default risk, with the definition of an index of good Governance (scG); we tried to verify the variables of Corporate Governance that produce effects on performance and risk of default (Z-score and leverage); we tried to verify the difference of effects of Corporate governance Index on performance and risk for family business and for companies active in M&A; we conducted an analysis on a sample of Italian companies to measure Corporate Governance quality and to evaluate the relationship with the accounting and market performance and the effect on risk level. We find that The Corporate Governance quality presents some correlation with performance and risk parameters. The non family companies are better structured. They show a positive correlation between some Corporate Governance drivers and performance and Z-score. We can observe that le “well-advised” firms in external strategies are able to obtain a better correlation with performance and also a good relation with Z-score. This study can suggest the definition of Corporate Governance Index according to the need to evaluate the opening to shareholders and stakeholders.We examine the relation between the different CG variables and some measure of performance and risk.

Keywords: Corporate Governance, Bankruptcy Prediction and Determinants, Corporate Finance, M&A, Accounting, Auditing and Performance Evaluation, Governance Index, Family business

How to cite this paper: Bernini, F., Mariani, G., & Panaro, D. (2013). The corporate governance drivers, performance and risk: empirical evidence from Italian context. [Conference issue]. Corporate Ownership & Control, 11(1-2), 126-139. https://doi.org/10.22495/cocv11i1conf2p4