Corporate Governance Quality (Larcker, Richardson & Tuna)
StrategyReliability: alpha 0.823 sample items
About this scale
A multi-item firm-level measure of corporate governance quality across board independence, ownership concentration, executive-pay structure, and disclosure transparency.
Sample item(s)
“The majority of our board members are independent”
“Executive compensation is tied to long-term performance”
“We disclose material information promptly to investors”
Reliability
Reported internal consistency: alpha 0.82. As a rule of thumb, Cronbach’s α ≥ .70 is considered acceptable, ≥ .80 good, and ≥ .90 excellent for established measures.
Notes
Pair with ESG and disclosure measures.
Source & citation
Larcker, D. F., Richardson, S. A., & Tuna, I. (2007): Corporate governance, accounting outcomes, and organizational performance. Accounting Review, Vol. 82, No. 4, pp. 963–1008.
Source. Scale details are summarised from the publication cited above. Always consult the original source for the full item set, scoring, and permission to use.
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