Corporate Governance, Capital Market Discipline and the Returns on Investment* by Klaus Gugler, Dennis C. Mueller and B. Burcin Yurtoglu We analyze the impact of corporate governance institutions, ownership structures and external capital market constraints on company returns on investment by using a sample of more than 19,000 companies from 61 countries across the world. We show that (1) of th...

Why were state-owned firms so common in the past, even in Western countries, and why were many of them privatized during the past two decades? Some recent papers argue that through state ownership the government can avoid the distortions to managerial incentives created by the corporate income tax. When the corporate tax rate is high enough, state ownership may be less inefficient than private ...

The present article is taken up with the dynamics of economic organization. In particular, it critically discusses much recent work which has asserted that economic organization—notably, the boundaries of firms, internal organization, and corporate governance—will undergo major transformative changes as a result of the emergence of the so-called “knowledge economy,” a term much fancied by busin...

The aim of this research is to explore the relationship of corporate governance with firm risk. This study establishes a link between corporate governance variables and firm risk for a sample of 106 Pakistani firms over a time of six years (20052010). Based on the estimation results, family control and bank control have negative impact on the firm risk whereas ownership structure and chairman/C...

Various monitoring and incentive mechanisms interact within the context of organizations to encourage management to maximise the value of their firm. Within the context of this paper I explore the interaction between insider ownership, financial analyst coverage and corporate value. I propose that any relationship between these variables is endogenous. However, due to managerial entrenchment an...

This paper investigates the extent to which corporate governance affects the cost of debt and equity capital of German exchange-listed companies. I examine corporate governance along three dimensions: financial information quality, ownership structure and board structure. The results suggest that firms with high levels of financial transparency and bonus compensations face lower cost of equity....

This study aims to examine whether there are differences in performance between family and nonfamily firms, taking into account the peculiarities of the Mexican corporate governance system. We propose an analysis that allows us to conduct a comprehensive study and comparison between companies with different (i.e., family vs. non-family) ownership structures, distinguished by developed patterns ...

The rise in private share ownership over the last decade is an interesting but relatively poorly researched issue in Australia. In the expectation that relations between large companies and their shareholders are already important and will become increasingly so, we report exploratory longitudinal studies of two aspects of the interaction. Regression analysis of shareholders’ demographic and at...

Instead of traditional principal–agent conflicts espoused in most research dealing with developed economies, principal–principal conflicts have been identified as a major concern of corporate governance in emerging economies. Principal–principal conflicts between controlling shareholders and minority shareholders result from concentrated ownership, extensive family ownership and control, busine...

This paper investigates the impact of mergers and acquisitions (M&A) on corporate performance. This article selects 36 M&A cases of China’s listed real estate companies in Shanghai and Shenzhen Stock Exchanges from 2008 to 2009. Regarding the corporate value in 2011 as the measure of the long-term performance, we will explore the relationship among check-and-balance Ownership Structure, board s...