An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

Victoria Krivogorsky
San Diego State University

Abstract: The purpose of this study is to examine the significance of institutional environments (depth of financial market, quality of investors and creditors protection), in affecting the direction and/or strength of the relationship between governance mechanisms (board composition and ownership concentration) and company’s performance. A difference in this study over most of the existing work is that it does not fully rely on law, market or accounting schemes. Rather it attempts to show that companies from within the same law and market system (continental Europe) have significant differences in institutional environments, which affect their governance. The moderating effects are examined using hierarchical moderated multiple regressions. Results indicate strong moderating effects of institutional environments on the relationship between board composition, ownership characteristics and company’s performance.

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