CORPORATE GOVERNANCE AND MARKET CAP DESTRUCTION: A PREDICTIVE MODEL

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Hugh Grove ORCID logo, Mac Clouse ORCID logo

DOI:10.22495/cocv12i2c6p8

Abstract

By focusing on specific board variables, both company performance and stock market performance have been investigated and a more comprehensive corporate governance approach has been advocated to help improve such performances (Larcker et al. 2007 and Grove et. al. 2011). In this paper, we extend such analyses by investigating a relationship between such corporate governance variables and market capitalization. We specifically integrate corporate governance variables into a predictive model for market capitalization (cap) destruction, using the example of the largest six (“Big 6”) gold mining companies publicly-listed in the U.S.

Keywords: Corporate Governance, Market Cap Destruction, Mining Companies

How to cite this paper: Grove, H., & Clouse, M. (2015). Corporate governance and market cap destruction: A predictive model. Corporate Ownership & Control, 12(2-6), 659-665. http://doi.org/10.22495/cocv12i2c6p8