Relationship of the Company Value with the Corporate Governance of Three Peruvian Companies: BBVA, IFS, Scotiabank from Peru (2010-2018)

Abstract

This article identifies and analyzes the relationships between value firm and Corporate Governance of three local financial firms. Up to now there are many metrics related to Corporate Governance, in this case an econometric model was applied with financial ratios and Corporate Governance (CG) indicators, grouped in three variables.

As explained variables are: QTobin, ROE, ROA, ROI. As explanatory variables are: Outsiders (External directors of Board), Board
Size (hoy many people are in their Boards), number of Committees, and how many Shareholders there are in their Boards.

The selected control variables are: Leverage, Liquidity of every firm, and Size (volume of incomes or sales quantity).

This paper has been investigated if there is any relationship between firm”™s performance financial value and corporate governance (CG) for the simple of firms selected as the companies best rated by the Lima Stock Exchange which have applied Corporate Governance in their organizations, these companies are as follows: BBVA Continental del Peru, IFS (International Financial Services), Scotiabank from Peru.

The sample of companies studied is in the Financial Sector of the Peruvian economy listed its shares on the Lima Stock Exchange from 2010 until 2018 included. For this research, the financial ratios and the QTobin from 2010 to 2018 were constructed for the selected companies.