Corporate Governance within the emerging markets

1800 domestic banks in Portugal. Foreign equity and board membership affect managerial choices and hence, as corporate governance mechanisms, influence the strategic decisions, pursuits and cost control outcomes. They call for future extension of their study to test their main hypotheses in other markets that have undergone some liberalization. In particular, in markets experiencing increasing globalization of foreign element of corporate governance will be a fruitful area for future research. As such, this proposed study responds to this call by investigation within the 5 emerging markets from South East Asia: Singapore, Malaysia, Indonesia, Philippines and Thailand.

3.4 Hypotheses

Based on the review of past literature above, this proposed study will investigate the relationship between corporate governance and value-based performance measures new management accounting techniques or innovations within the specific setting of emerging markets. The impact of this on firm value will be explored. The following hypotheses is developed: H1: Higher foreign shareholder‘s equity holdings will lead to adoption of value- based performance measures. H2: Higher composition of foreign outside board membership will lead to adoption of value-based performance measures H3: Firms with low insider management ownership will lead to adoption of value-based performance measures. 1801 H4: Firms with higher institutional ownership will lead to adoption of value-based performance measures. H5: Adoption of value-based performance measures will lead to higher firm performance. H5: Higher foreign shareholder‘s equity will lead to higher firm performance H6: Higher composition of foreign outside board membership will lead to higher firm performance H7: Firms with higher insider management ownership will lead to higher firm performance H8: Firms with a higher institutional ownership will lead to higher firm performance

Chapter 4: Methodology

To test the hypotheses in this research, a sample of firms listed on the stock exchanges of the 5 countries from the emerging markets Singapore, Malaysia, Indonesia, Philippines and Thailand will be collected from Datastream and Bloomberg. The firm valu e will be measured by Tobin‘s Q, similar to past studies Agrawal Knoeber, 1996; R. La Porta, Lopez-de-Silanes, Shleifer, Vishny, β00β; Oxelheim Randøy, β00γ; Poletti Hughes, β009.