The role of corporate governance on the market value of the firms: A case study of industrial and investment companies listed in the Palestine exchange

Abstract

The purpose of this paper is to examine the cause-and-effect relationship between corporate governance and the market value of companies in both the industrial and the investment sectors listed in the Palestinian stock exchange market. The data was collected from the annual financial reports and the websites of the companies for the period from 2013 – 2019. The content analysis and the panel data analysis were used to investigate the cause and the effect relationship of corporate governance on the company's performance. The results indicated that there is a positive cause and effect relationship for gender diversity on the market value of industrial companies listed on the Palestinian stock exchange market. Meanwhile, corporate governance dimensions were all insignificant to the market value of investment companies listed in the Palestinian stock exchange market. Thus, corporate governance has no effect on the market value of investment companies.

Keywords

• corporate governance
• industrial sector
• investment sector
• Palestine economy

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