Corporate governance and its effect on the performance on family and non-family companies listed on the Cyprus stock exchange
Georgiou, Andreas K. (Creator)
The main aim of this research is to investigate the relationship between corporate governance and performance of firms operating in Cyprus and to apply these findings to a private university in Cyprus, namely the Frederick University of Cyprus (thereafter FUCy). The main objective of the research is to apply the research findings to the improvement of course programmes in accounting and finance and business administration. The research focuses on firms operating in Cyprus. However this research is supported by overseas research in the area. In contrast to most previous studies it was found that family firms (thereafter FFs) have a negative impact on firm performance however the results of the study provide significant evidence that the implementation of corporate governance mechanisms by FFs can lead to performance benefits. It was found that FFs that operate in markets where there is full compliance with the CGC have a positive impact on firm values. Ensuring more effective corporate governance practices and adequate information disclosure are likely to increase the confidence of investors in the firm and make the FFs less risky to invest in. This will result in lower costs of capital and higher firm values as a result. Furthermore, the results of this study generally suggest that the adoption of corporate governance mechanisms has some important implications for FFs in the CSE. Corporate governance can greatly assist the FF sector via the introduction of better management practices and greater opportunities for growth through the utilisation of non-executive directors. Effective corporate governance mechanisms are likely to result in boards exerting much needed pressure for improved performance by ensuring that the interests of the firms are served. Empirical evidence also shows differences in the effect of corporate governance mechanisms for firms operating in the Alternative Market compared to the Main and Parallel Markets. For firms in the Alternative Market, a
Downloadable Archival Material, English, 2010-07