Journal article
To Steal or Not to Steal: Firm Attributes, Legal Environment, and Valuation
The Journal of finance (New York), Vol.60(3), pp.1461-1493
06/2005
DOI: 10.1111/j.1540-6261.2005.00767.x
Abstract
Data on corporate governance and disclosure practices reveal wide within-country variation that decreases with the strength of investors' legal protection. A simple model identifies three firm attributes related to that variation: investment opportunities, external financing, and ownership structure. Using firm-level governance and transparency data from 27 countries, we find that all three firm attributes are related to the quality of governance and disclosure practices, and firms with higher governance and transparency rankings are valued higher in stock markets. All relations are stronger in less investor-friendly countries, demonstrating that firms adapt to poor legal environments to establish efficient governance practices. [PUBLICATION ABSTRACT]
Details
- Title: Subtitle
- To Steal or Not to Steal: Firm Attributes, Legal Environment, and Valuation
- Creators
- Art DurnevE Han Kim
- Resource Type
- Journal article
- Publication Details
- The Journal of finance (New York), Vol.60(3), pp.1461-1493
- DOI
- 10.1111/j.1540-6261.2005.00767.x
- ISSN
- 0022-1082
- eISSN
- 1540-6261
- Publisher
- Blackwell Publishers Inc
- Language
- English
- Date published
- 06/2005
- Academic Unit
- Finance
- Record Identifier
- 9984380500902771
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