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Title:
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MANAGEMENT OR MARKET VARIABLES IN THE ASSESSMENT OF CORPORATE PERFORMANCE? NEW EVIDENCE USING PANEL DATA |
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Author(s):
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Maria Elisabete Duarte Neves, Elisabete Fátima Simões Vieira and Zélia Serrasqueiro |
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ISBN:
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978-989-8704-36-8 |
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Editors:
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Piet Kommers, Tomayess Issa, Adriana Backx Noronha Viana, Theodora Issa and Pedro Isaías |
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Year:
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2021 |
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Edition:
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Single |
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Keywords:
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Corporate Performance, Panel Data, Euronext Lisbon |
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Type:
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Full |
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First Page:
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91 |
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Last Page:
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96 |
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Language:
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English |
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Cover:
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Full Contents:
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click to dowload 
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Paper Abstract:
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This work intends to study the influence of some companies' specific characteristics, corporate governance factors, and
macroeconomic environment in the Portuguese companies' performance.
To achieve this aim, we have used data from 40 Euronext Lisbon companies in the period between 2014 and 2019. We
have used the panel data methodology, specifically the Generalized Method of Moments (GMM) estimation method by
Arellano and Bover (1995) and Blundell and Bond (1998).
The results point out that the sign and significance of the determinants of corporate performance change depending on the
variable used to measure performance. The TobinsQ variable, as a market variable and of interest to potential investors, is
explained both by corporate governance variables and by factors specific to the company, regardless of macroeconomic
conditions. ROA, as an accounting variable, managed internally by the organization, is influenced by the same factors with
substantially different signs. For example, while personnel expenses negatively affect ROA as they represent yet another
expense that will reduce results, in the market's view, these expenses are understood as social concerns that lead to more
motivation and greater productivity, hence more potential for corporate growth. |
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