Corporate Governance and Regulation : Can There Be Too Much of a Good Thing?

For a large number of companies from different countries, the authors analyze how company corporate governance practices and country regulatory regimes interact in terms of company valuation. They confirm that corporate governance plays a crucial role in efficient company monitoring and shareholder protection, and consequently positively impacts valuation. They find substitution in valuation impact between corporate governance measures at the company and country level, with a possibility of over-regulation. Corporate governance appears more valuable for companies that rely heavily on external financing, consistent with the hypothesis that the main role of corporate governance is to protect external financiers.

Bibliographic Details

Main Authors:	Bruno, Valentina G., Claessens, Stijn
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	World Bank, Washington, DC 2007-03
Subjects:	ACCOUNTABILITY, AGENCY COSTS, ANTI-TAKEOVER PROVISIONS, AUDIT COMMITTEE, AUDIT COMMITTEES, AUTHORITY, BOARD MEMBERS, BOOK VALUE, CAPITAL EXPENDITURES, CAPITAL MARKETS, CASH FLOWS, CHAIRMAN AND CEO, CHARTER, CHARTER AMENDMENTS, CHARTERS, COMPANY, COMPANY LAWS, CONFLICTS OF INTERESTS, CONSTITUTION, CORPORATE FAILURES, CORPORATE GOVERNANCE, CORPORATE GOVERNANCE REFORMS, CORPORATE GOVERNANCE REGIME, CORPORATE GOVERNANCE REGIMES, CORPORATE GOVERNANCE STANDARDS, CORPORATIONS, CORRUPTION, COUNTRY DATA, DEGREE OF INVESTOR PROTECTION, DISCLOSURE, ECONOMIC PERFORMANCE, EMPLOYMENT, ENFORCEABILITY, FINANCIAL DEVELOPMENT, FINANCIAL INFORMATION, FINANCIAL INSTITUTIONS, FINANCIAL MARKETS, FINANCING CONSTRAINTS, FIRMS, FOREIGN COMPANIES, GOLDEN PARACHUTES, GOOD CORPORATE GOVERNANCE, GOVERNANCE DATA, GOVERNANCE INDICATOR, GOVERNANCE INDICATORS, GOVERNANCE REFORMS, GOVERNMENT POLICIES, INCORPORATION, INSTITUTIONAL ENVIRONMENT, INSTITUTIONAL INVESTORS, INSTITUTIONAL SHAREHOLDER, INTERNAL AUDIT, INVESTOR PROTECTION, LARGE COMPANIES, LEGAL DISPUTES, LEGAL PROTECTION, LEGAL REQUIREMENTS, LEGAL SYSTEMS, LIMITED, MAJORITY VOTE, MANAGERS, MERGERS, MINORITY SHAREHOLDERS, OWNERSHIP STRUCTURE, POISON PILLS, POLITICIANS, PROXY, PROXY CONTEST, PROXY STATEMENT, PUBLIC OPINION, REGULATORY BURDENS, REGULATORY INTERVENTION, REGULATORY REGIMES, REVERSE CAUSALITY, SHARE CAPITAL, SHAREHOLDER, SHAREHOLDER MEETING, SHAREHOLDER PROTECTION, SHAREHOLDERS, SMALL COMPANIES, SMALLER COMPANIES, STOCK MARKETS, SUPPLIERS, TAKEOVER, TAKEOVERS, TRANSPARENCY, TRANSPARENT PROCEDURE, VOTING,
Online Access:	http://documents.worldbank.org/curated/en/2007/03/7600950/corporate-governance-regulation-can-too-much-good-thing http://hdl.handle.net/10986/7117
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