Corporate governance and regulation: Can there be too much of a good thing? |
| |
Authors: | Valentina Bruno Stijn Claessens |
| |
Institution: | 1. American University—Department of Finance and Real Estate, Kogod School of Business, 4400 Massachusetts Avenue, NW, Washington, DC 20016-8044, USA;2. International Monetary Fund, University of Amsterdam and CEPR, International Monetary Fund (IMF), 700 19th Street, NW, Washington, DC 20431, USA |
| |
Abstract: | We investigate how company-level corporate governance practices and country-level legal investor protection jointly affect company performance. We find that in any legal regime there are a few specific governance practices that improve performance. Companies with good governance practices operating in stringent legal environments, however, show a valuation discount relative to similar companies operating in flexible legal environments. At the same time, a stronger country-level regime does not reduce the valuation discount of companies with weak governance practices. Our analysis suggests a threshold level of country development above which stringent regulation hurts the performance of well governed companies or has a neutral effect for poorly governed companies. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|