Publication: Corporate Governance and Regulation : Can There Be Too Much of a Good Thing?
Date
2007-03
ISSN
Published
2007-03
Author(s)
Bruno, Valentina G.
Claessens, Stijn
Abstract
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.
Citation
“Bruno, Valentina G.; Claessens, Stijn. 2007. Corporate Governance and Regulation : Can There Be Too Much of a Good Thing?. Policy Research Working Paper; No. 4140. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/d6059b32-375a-5136-beb3-baa75457ed2a License: CC BY 3.0 IGO.”
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