Corporate governance vs. obtained results – research methodology issue

Abstract

In the face of increasing interest in corporate governance issues, the
correctness of research methods in this area becomes a matter of crucial
importance. In the article, the author draws attention to the methodological
areas that generate the highest probability of errors in the use of microeconometric
tools. Special attention, in the author’s opinion, should be paid
to the distinction of agency problems occurring in corporations with different
ownership structures, as well as to reverse causality, missing variables, sample
selectivity, and measurement errors in variables. Minimizing the risk of getting
the estimation errors associated with the occurrence of these phenomena
should increase the reliability of the results obtained and the credibility of the
commonly used ratings of corporate governance.