Hostname: page-component-848d4c4894-v5vhk Total loading time: 0 Render date: 2024-06-21T01:58:41.621Z Has data issue: false hasContentIssue false

International Corporate Governance

Published online by Cambridge University Press:  06 April 2009

Diane K. Denis
Affiliation:
dianedenis@mgmt.purdue.edu, Krannert Graduate School of Management, Purdue University, West Lafayette, IN 47907.
John J. McConnell
Affiliation:
mcconnell@mgmt.purdue.edu, Krannert Graduate School of Management, Purdue University, West Lafayette, IN 47907.

Abstract

We survey two generations of research on corporate governance systems around the world, concentrating on countries other than the U.S. The first generation of international corporate governance research is patterned after the U.S. research that precedes it. These studies examine individual governance mechanisms—particularly board composition and equity ownership—in individual countries. The second generation of international corporate governance research considers the possible impact of differing legal systems on the structure and effectiveness of corporate governance and compares systems across countries.

Type
Research Article
Copyright
Copyright © School of Business Administration, University of Washington 2003

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Ahn, S., and Denis, D.. “Internal Capital Markets and Investment Policy: Evidence from Corporate Spinoffs”. Working Paper, Purdue Univ. (2002).Google Scholar
Barclay, M. J., and Holderness, C. G.. “Private Benefits from Control of Public Corporations”. Journal of Financial Economics, 25 (1989), 371395.CrossRefGoogle Scholar
Barclay, M. J., and Holderness, C. G.. “Negotiated Block Trades and Corporate Control”. Journal of Finance, 25 (1991), 861878.CrossRefGoogle Scholar
Barclay, M. J., and Holderness, C. G.. “The Law and Large-Block Trades”. Journal of Law and Economics, 35 (1992), 265294.CrossRefGoogle Scholar
Bebchuk, L. A., and Roe, M. J.. “A Theory of Path Dependence in Corporate Ownership and Governance.” Stanford Law Review, 52 (1999), 127170.CrossRefGoogle Scholar
Berger, P., and Ofek, E.. “Diversification's Effect on Firm Value.” Journal of Financial Economics, 37 (1995), 3965.CrossRefGoogle Scholar
Bianchi, M., and Enriques, L.. “Has the 1998 Reform of Italian Listed Company Law Fostered Institutional Investor Activism?Mimeo, CONSOB (1999).Google Scholar
Blasi, J., and Shleifer, A.. “Corporate Governance in Russia: An Initial Look.” In Corporate Governance in Central Europe and Russia: Vol. 2 Insiders and the State, Frydman, Roman, Gray, Cheryl W., and Rapaczynski, Andrzej, eds. Budapest: Central European Univ. Press (1996).Google Scholar
Blass, A.; Yafeh, Y.; and Yosha, O.. “Corporate Governance in an Emerging Market: The Case of Israel.” Journal of Applied Corporate Finance, 10 (1998), 7989.CrossRefGoogle Scholar
Borokhovich, K. A.; Parrino, R.; and Trapani, T.. “Outside Directors and CEO Selection.” Journal of Financial and Quantitative Analysis, 31 (1996), 337355.CrossRefGoogle Scholar
Boubakri, N., and Cosset, J. C.. “The Financial and Operating Performance of Newly-Privatized Firms: Evidence from Developing Countries.” Journal of Finance, 53 (1998), 10811110.CrossRefGoogle Scholar
Boubakri, N.; Cosset, J. C.; and Guedhami, O.. “Liberalization, Corporate Governance and the Performance of Newly Privatized Firms.” Working Paper, Univ. of Michigan (2001).CrossRefGoogle Scholar
Bradley, M.; Schipani, C. A.; Sundaram, A.; and Walsh, J. P.. The Purposes and Accountability of the Corporation in Contemporary Society: Corporate Governance at a Crossroads.” Law and Contemporary Problems, 62 (1999), 986.CrossRefGoogle Scholar
Brickley, J.; Coles, J.; and Jarrell, G.. “Leadership Structure: Separating the CEO and Chairman of the Board.” Journal of Corporate Finance, 3 (1997), 189220.CrossRefGoogle Scholar
Bris, A., and Cabolis, C.. “Corporate Governance Convergence by Contract: Evidence from Cross Border Mergers.” Working Paper, Yale Univ. (2002).Google Scholar
Bryan, S. H.; Nash, R. C.; and Patel, A.. “The Equity Mix in Executive Compensation: An Investigation of Cross-Country Differences.” Working Paper, Wake Forest Univ. (2002).Google Scholar
Burkhart, M.; Panunzi, F.; and Shleifer, A.. “Family Firms.” Journal of Finance (forthcoming 2003).CrossRefGoogle Scholar
Campa, J. M., and Kedia, S.. “Explaining the Diversification Discount.” Journal of Finance, 57 (2002), 17311763.CrossRefGoogle Scholar
Carline, N. F.; Linn, S. C.; and Yadav, P. K.. “The Influence of Managerial Ownership on the Real Gains in Corporate Mergers and Market Revaluation of Merger Partners: Empirical Evidence.” Working Paper, Univ. of Oklahoma (2002).CrossRefGoogle Scholar
Chang, S., and Mayers, D.. “Who Benefits in a Negotiated Block Trade?” Working Paper, Univ. of California at Riverside (1995).Google Scholar
Chen, S., and Ho., K. W.Corporate Diversification, Ownership Structure, and Firm Value: The Singapore Evidence.” International Review of Financial Analysis, 9 (2000), 315326.CrossRefGoogle Scholar
Chevalier, J. A.Why Do Firms Undertake Diversifying Mergers? An Examination of the Investment Policies of Merging Firms.” Working Paper, Univ. of Chicago and NBER (2000).Google Scholar
Claessens, S.Corporate Governance and Equity Prices: Evidence from the Czech and Slovak Republics.” Journal of Finance, 52 (1997), 16411658.CrossRefGoogle Scholar
Claessens, S., and Djankov, S.. “Managers, Incentives, and Corporate Performance: Evidence from the Czech Republic.” Working Paper, World Bank (1998).Google Scholar
Claessens, S., and Djankov, S.. “Politicians and Firms in Seven Central and Eastern European Countries.” Working Paper, World Bank (1998).Google Scholar
Claessens, S., and Djankov, S.. “Ownership Concentration and Corporate Performance in the Czech Republic.” Journal of Comparative Economics, 27 (1999), 498513.CrossRefGoogle Scholar
Claessens, S.; Djankov, S.; Fan, J. P. H.; and Lang, L. H. P.. “The Pattern and Valuation Effects of Corporate Diversification: A Comparison of the U.S., Japan, and Other East Asian Economies.” Working Paper, World Bank (1998).Google Scholar
Claessens, S.; Djankov, S.; and Lang, L. H. P.. “The Separation of Ownership and Control in East Asian Corporations”. Journal of Financial Economics, 58 (2000), 81112.CrossRefGoogle Scholar
Coffee, J. C.The Future as History: The Prospects for Global Convergence in Corporate Governance and its Implications.” Northwestern Univ. Law Review, 93 (1999), 641708.Google Scholar
Coffee, J. C.. “Do Norms Matter?: A Cross-Country Examination of the Private Benefits of Control.” Working Paper, Center for Law and Economic Studies, Columbia Univ. (2001).Google Scholar
Conyon, M. J., and Murphy, K. J.. “The Prince and the Pauper? CEO Pay in the United States and United Kingdom”. Economic Journal, 110 (2000), F640F671.CrossRefGoogle Scholar
Core, J. E.; Guay, W.; and Larcker, D. F.. “Executive Equity Compensation and Incentives: A Survey.” Economic Policy Review (forthcoming 2003).Google Scholar
Craswell, A. T.; Taylor, S. L.; and Saywell, R. A.. “Ownership Structure and Corporate Performance: Australian Evidence.” Pacific-Basin Finance Journal, 5 (1997), 301323.CrossRefGoogle Scholar
Crespi, R.; Gispert, C.; and Renneboog, L.. “Cash-Based Executive Compensation in Spain and the U.K.” In Corporate Governance: Convergence and Diversity, McCahery, J., Moerland, P., Raaijmakers, T., and Renneboog, L., eds. Oxford Univ. Press (2002).Google Scholar
Dahlquist, M.; Pinkowitz, L.; Stulz, R. M.; and Williamson, R.. “Corporate Governance and the Home Bias.” Journal of Financial and Quantitative Analysis, 38 (2003), 87110.CrossRefGoogle Scholar
Dahya, J., and McConnell, J. J.. “Outside Directors and Corporate Board Decisions.” Working Paper, Purdue Univ. (2002).Google Scholar
Dahya, J.; McConnell, J. J.; and Travlos, N.. “The Cadbury Committee, Corporate Performance, and Top Management Turnover.” Journal of Finance, 57 (2002), 461483.Google Scholar
DeAngelo, H., and DeAngelo, L.. “Managerial Ownership of Voting Rights.” Journal of Financial Economics, 14 (1985), 3369.CrossRefGoogle Scholar
de Jong, A.; DeJong, D. V.; Mertens, G.; and Wasley, C. E.. “The Role of Self-Regulation in Corporate Governance: Evidence from the Netherlands”. Working Paper, Univ. of Rochester (2002).Google Scholar
Demirgüç-Kunt, A., and Maksimovic, V.. “Funding Growth in Bank-Based and Market-Based Financial Systems: Evidence from Firm-Level Data.” Journal of Financial Economics, 65 (2002), 337364.Google Scholar
Demsetz, H., and Lehn, K.. “The Structure of Corporate Ownership: Causes and Consequences.” Journal of Political Economy, 93 (1985), 11551177.CrossRefGoogle Scholar
Denis, D. J.; Denis, D. K.; and Sarin, A.. “Agency Problems, Equity Ownership, and Corporate Diversification.” Journal of Finance, 52 (1997), 135160.CrossRefGoogle Scholar
Denis, D. K.Twenty-five Years of Corporate Governance Research … and Counting.” Review of Financial Economics, 10 (2001), 191212.CrossRefGoogle Scholar
Dewenter, K., and Malatesta, P. H.. “State-Owned and Privately-Owned Firms: An Empirical Analysis of Profitability, Leverage, and Labor Intensity.” American Economic Review, 91 (2001), 320334.CrossRefGoogle Scholar
Dittmar, A.; Mahrt-Smith, J.; and Servaes, H.. “International Corporate Governance and Corporate Cash Holdings.” Journal of Financial and Quantitative Analysis, 38 (2003), 111133.Google Scholar
Doidge, C.; Karolyi, G. A.; and Stulz, R. M.. “Why are Foreign Firms Listed in the U.S. Worth More?” Working Paper, NBER (2001).CrossRefGoogle Scholar
D'Souza, J.; Megginson, W.; and Nash, R.. “Determinants of Performance Improvements in Privatized Firms: The Role of Restructuring and Corporate Governance”. Working Paper, Univ. of Georgia (2001).Google Scholar
Durnev, A., and Kim, E. H.. “To Steal or Not to Steal: Firm Characteristics, Legal Environment, and Valuation”. Working Paper, Univ. of Michigan (2002).Google Scholar
Dyck, A., and Zingales, L.. “Private Benefits of Control: An International Comparison.” Journal of Finance (forthcoming 2003).Google Scholar
Eisenberg, T.; Sundgren, S.; and Wells, M. T.. “Larger Board Size and Decreasing Firm Value in Small Firms.” Journal of Financial Economics, 48 (1998), 3554.CrossRefGoogle Scholar
Esty, B. C., and Megginson, W. L.. “Creditor Rights, Enforcement, and Debt Ownership Structure: Evidence from the Global Syndicated Loan Market.” Journal of Financial and Quantitative Analysis, 38 (2003), 3759.CrossRefGoogle Scholar
Faccio, M., and Lang, L. H. P.. “The Ultimate Ownership ofWestern European Corporations.” Journal of Financial Economics, 65 (2002), 365396.CrossRefGoogle Scholar
Fauver, L.; Houston, J.; and Naranjo, A.. “Capital Market Development, International Integration, Legal Systems, and the Value of Corporate Diversification: A Cross-Country Analysis.” Journal of Financial and Quantitative Analysis, 38 (2003), 135157.Google Scholar
Firth, M.Takeovers in New Zealand: Motives, Stockholder Returns, and Executive Share Ownership.” Pacific-Basin Finance Journal, 5 (1997), 419440.CrossRefGoogle Scholar
Franks, J. R., and Mayer, C.. “Hostile Takeovers and the Correction of Managerial Failure.” Journal of Financial Economics, 40 (1996), 163181.Google Scholar
Franks, J. R., and Mayer, C.. “Ownership and Control of German Corporations.” Review of Financial Studies, 14 (2001), 943977.CrossRefGoogle Scholar
Franks, J. R.; Mayer, C.; and Renneboog, L.. “Who Disciplines Management in Poorly Performing Companies?Journal of Financial Intermediation, 10 (2001), 209248.Google Scholar
Frydman, R.; Gray, C. W.; Hessel, M.; and Rapaczynski, A.. “When Does Privatization Work? The Impact of Private Ownership on Corporate Performance in Transition Economies.” Quarterly Journal of Economics, 114 (1999), 11531191.CrossRefGoogle Scholar
Frydman, R.; Pistor, K.; and Rapaczynski, A.. “Investing in Insider-Dominated Firms: A Study of Russian Voucher Privatization Funds.” In Corporate Governance in Central Europe and Russia, Vol. 1: Banks, Funds, and Foreign Investors. Frydman, R., Gray, C. W., and Rapaczynski, A., eds. Budapest, Hungary: Central European Univ. Press (1996).CrossRefGoogle Scholar
Giannetti, M.Do Better Institutions Mitigate Agency Problems? Evidence from Corporate Finance Choices.” Journal of Financial and Quantitative Analysis, 38 (2003), 185212.Google Scholar
Gibson, M. S.Is Corporate Governance Ineffective in Emerging Markets?Journal of Financial and Quantitative Analysis, 38 (2003), 231250.CrossRefGoogle Scholar
Gorton, G., and Schmid, F. A.. “Universal Banking and the Performance of German Firms.” Journal of Financial Economics, 58 (2000), 2880.Google Scholar
Graham, J. R.; Lemmon, M.; and Wolf, J.. “Does Corporate Diversification Destroy Value?Journal of Finance, 57 (2001), 695720.Google Scholar
Gul, F. A., and Qiu, H.. “Legal Protection, Corporate Governance and Information Asymmetry in Emerging Financial Markets.” Working Paper, City Univ. of Hong Kong (2002).Google Scholar
Hansmann, H., and Kraakman, R.. “The End of History for Corporate Law.” Georgetown Law Journal, 89 (2001), 439468.Google Scholar
Hermalin, B. E., and Weisbach, M. S.. “Boards of Directors as an Endogenously Determined Institution: A Survey of the Economic Literature.” Economic Policy Review (forthcoming 2003).Google Scholar
Himmelberg, C. P.; Hubbard, R. G.; and Love, I.. “Investor Protection, Ownership, and the Cost of Capital.” Working Paper, Columbia Univ. (2002).Google Scholar
Himmelberg, C. P.; Hubbard, R. G.; and Palia, D.. “Understanding the Determinants of Managerial Ownership and the Link between Ownership and Performance.” Journal of Financial Economics, 53 (1999), 353384.CrossRefGoogle Scholar
Hingorani, A.; Lehn, K.; and Makhija, A.. “Investor Behavior in Mass Privatization: The Case of the Czech Voucher Scheme.” Journal of Financial Economics, 44 (1997), 349396.CrossRefGoogle Scholar
Holderness, C. G. “A Survey of Blockholders and Corporate Control”. Economic Policy Review (forthcoming 2003).Google Scholar
Holmström, B., and Kaplan, S. N.. “Corporate Governance and Merger Activity in the U.S.: Making Sense of the 1980's 1990's.” Journal of Economic Perspectives, 15 (2001), 121144.Google Scholar
Hoshi, T.; Kashyap, A.; and Scharfstein, D.. “The Role of Banks in Reducing the Costs of Financial Distress in Japan”. Journal of Financial Economics, 27 (1990), 6788.CrossRefGoogle Scholar
Hoshi, T.; Kashyap, A.; and Scharfstein, D.. “Corporate Structure, Liquidity, and Investment: Evidence from Japanese Industrial Groups.” Quarterly Journal of Economics, 106 (1991), 3360.CrossRefGoogle Scholar
Hossain, M.; Prevost, A.; and Rao, R.. “Corporate Governance in New Zealand: The Effect of the 1993 Companies Act on the Relation between Board Composition and Firm Performance.” Pacific Basin Finance Journal, 9 (2001), 119145.CrossRefGoogle Scholar
Jenkinson, T., and Ljungqvist, A. P.. “The Role of Hostile Stakes in German Corporate Governance.” Journal of Corporate Finance, 7 (2001), 397446.Google Scholar
Jensen, M. C.The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems.” Journal of Finance, 48 (1993), 831880.CrossRefGoogle Scholar
Jensen, M., and Meckling, W.. “Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure.” Journal of Financial Economics, 3 (1976), 305360.CrossRefGoogle Scholar
Joh, S. W.Control, Ownership, and Performance: The Case of Korea.” Working Paper, Korea Development Institute, Seoul, Korea (2000).Google Scholar
John, K., and Kedia, S.. “Design of Corporate Governance: Role of Ownership Structure, Takeovers, and Bank Debt.” Working Paper, Harvard Univ. (2002).Google Scholar
John, K., and Senbet, L. W.. “Corporate Governance and Board Effectiveness.” Journal of Banking and Finance, 22 (1998), 371403.CrossRefGoogle Scholar
Johnson, S.; Boone, P.; Breach, A.; and Friedman, E.. “Corporate Governance in the Asia Financial Crisis.” Journal of Financial Economics, 58 (2000), 141186.Google Scholar
Johnson, S.; Porta, R. La; Lopez-de-Silanes, F.; and Shleifer, A.. “Tunneling.” American Economic Review, 90 (2000), 2227.CrossRefGoogle Scholar
Johnson, W. B.; Magee, R.; Nagarajan, N.; and Newman, H.. “An Analysis of the Stock Price Reaction to Sudden Executive Deaths: Implications for the Management Labor Market.” Journal of Accounting and Economics, 7 (1985), 151174.CrossRefGoogle Scholar
Kabir, R.; Cantrijn, D.; and Jeunink, A.. “Takeover Defenses, Ownership Structure and Stock Returns in the Netherlands: An Empirical Investigation.” Strategic Management Journal, 18 (1997), 97109.3.0.CO;2-2>CrossRefGoogle Scholar
Kang, J., and Shivdasani, A.. “Firm Performance, Corporate Governance, and Top Executive Turnover in Japan.” Journal of Financial Economics, 38 (1995), 2958.Google Scholar
Kantor, B.Ownership and Control in South Africa after Black Rule.” Journal of Applied Corporate Finance, 10 (1998), 6978.CrossRefGoogle Scholar
Kaplan, S.Top Executives, Turnover, and Firm Performance in Germany.” Journal of Law, Economics, and Organization, 10 (1994), 142159.CrossRefGoogle Scholar
Kaplan, S., and Minton, B.. “Appointments of Outsiders to Japanese Boards: Determinants and Implications for Managers.” Journal of Financial Economics, 36 (1994), 225257.Google Scholar
Karpoff, J. M.The Impact of Shareholder Activism on Target Companies: A Survey of Empirical Findings.” Working Paper, Univ. of Washington (1998).Google Scholar
Khanna, T.; Kogan, J.; and Palepu, K.. “Globalization and Corporate Governance Convergence? A Cross-Country Analysis.” Working Paper, Harvard Business School (2002).Google Scholar
Klapper, L. F., and Love, I.. “Corporate Governance, Investor Protection, and Performance in Emerging Markets.” Working Paper #2818, World Bank (2002).Google Scholar
Köke, J.Control Transfers in Corporate Germany: Their Frequency, Causes, and Consequences.” Working Paper, Centre for European Economic Research, Mannheim, Germany (2001).Google Scholar
Lang, L. H. P., and Stulz, R. M., “Tobin's q, Corporate Diversification, and Firm Performance.” Journal of Political Economy, 102 (1994), 12481281.Google Scholar
La Porta, R., and Lopez-de-Silanes, F.. “Benefits of Privatization-Evidence from Mexico.” Quarterly Journal of Economics, 114 (1999), 11931242.CrossRefGoogle Scholar
La Porta, R.; Lopez-de-Silanes, F.; and Shleifer, A.. “Corporate Ownership around the World.” Journal of Finance, 54 (1999), 471517.Google Scholar
La Porta, R.; Lopez-de-Silanes, F.; Shleifer, A.; and Vishny, R. W.. “Legal Determinants of External Finance.” Journal of Finance, 52 (1997), 11311150.Google Scholar
La Porta, R.; Lopez-de-Silanes, F.; Shleifer, A.; and Vishny, R. W.. “Law and Finance.” Journal of Political Economy, 106 (1998), 11131155.CrossRefGoogle Scholar
La Porta, R.; Lopez-de-Silanes, F.; Shleifer, A.; and Vishny, R. W.. “Investor Protection and Corporate Governance.” Journal of Financial Economics, 58 (2000), 327.CrossRefGoogle Scholar
La Porta, R.; Lopez-de-Silanes, F.; Shleifer, A.; and Vishny, R. W.. “Investor Protection and Corporate Valuation.” Journal of Finance, 57 (2002), 11471170.Google Scholar
Lease, R. C.; McConnell, J. J.; and Mikkelson, W. H.. “The Market Value of Control in Publicly Traded Corporations.” Journal of Financial Economics, 11 (1983), 439471.CrossRefGoogle Scholar
Lease, R. C.; McConnell, J. J.; and Mikkelson, W. H.. “The Market Value of Differential Voting Rights in Closely Held Corporations.” Journal of Business, 57 (1984), 443467.Google Scholar
Lemmon, M. L., and Lins, K. V.. “Ownership Structure, Corporate Governance, and Firm Value: Evidence from the East Asian Financial Crisis.” Journal of Finance (forthcoming 2003).Google Scholar
Lins, K. V.Equity Ownership and Firm Value in Emerging Markets.” Journal of Financial and Quantitative Analysis, 38 (2003), 159184.Google Scholar
Lins, K. V., and Servaes, H.. “International Evidence on the Value of Corporate Diversification.” Journal of Finance, 54 (1999), 22152240.Google Scholar
Lins, K. V., and Servaes, H.. “Is Corporate Diversification Beneficial in Emerging Markets?Financial Management 31 (2002), 531.Google Scholar
Liu, L. S.Chinese Characteristics Compared: A Legal and Policy Perspective of Corporate Finance and Governance in Taiwan and China.” Working Paper, Soochow Univ. (2001).Google Scholar
Lopez-de-Silanes, F.Determinants of Privatization Prices.” Quarterly Journal of Economics, 112 (1997), 9651025.Google Scholar
Majumdar, S. K.Assessing Comparative Efficiency of the State-Owned Mixed and Private Sectors in Indian Industry.” Public Choice, 96 (1998), 124.CrossRefGoogle Scholar
Mak, Y. T., and Yuanto, K.. “Size Really Matters: Further Evidence on the Negative Relationship between Board Size and Firm Value.” Working Paper, National Univ. of Singapore (2002).Google Scholar
Makhija, A. K., and Spiro, M.. “Ownership Structure as a Determinant of Share Value: Evidence from Newly Privatized Czech Firms.” Financial Review, 35 (2000), 132.CrossRefGoogle Scholar
Maksimovic, V., and Phillips, G.. “Do Conglomerate Firms Allocate Resources Inefficiently across Industries?Journal of Finance, 57 (2002), 721768.CrossRefGoogle Scholar
McConnell, J. J., and Servaes, H.. “Additional Evidence on Equity Ownership and Corporate Value.” Journal of Financial Economics, 25 (1990), 595612.CrossRefGoogle Scholar
Megginson, W. L.; Nash, R.; and van Randenborgh, M.. “The Financial and Operating Performance of Newly Privatized Firms: An International Empirical Analysis.” Journal of Finance, 49 (1994), 403452.CrossRefGoogle Scholar
Megginson, W. L., and Netter, J. M.. “From State to Market: A Survey of Empirical Studies on Privatization.” Journal of Economic Literature, 39 (2001), 321389.Google Scholar
Mehran, H.Executive Compensation Structure, Ownership, and Firm Performance.” Journal of Financial Economics, 38 (1995), 163185.CrossRefGoogle Scholar
Miguel, A.; Pindado, J.; and de la Torre, C.. “Ownership Structure and Firm Value: New Evidence from the Spanish Corporate Governance System.” Working Paper, Univ. of Salamanca (2001).Google Scholar
Mikkelson, W., and Regassa, H.. “Premiums Paid in Block Transactions.” Managerial and Decision Economics, 12 (1991), 511517.Google Scholar
Mikkelson, W., and Ruback, R. S.. “An Empirical Analysis of the Interfirm Equity Investment Process.” Journal of Financial Economics, 14 (1985), 523553.Google Scholar
Mitton, T.A Cross-Firm Analysis of the Impact of Corporate Governance on the East Asian Financial Crisis.” Journal of Financial Economics, 64 (2002), 215242.Google Scholar
Morck, R.; Nakamura, M.; and Shivdasani, A.. “Banks, Ownership Structure, and Firm Value in Japan.” Journal of Business, 73 (2000), 539567.CrossRefGoogle Scholar
Morck, R.; Shleifer, A.; and Vishny, R. W.. “Management Ownership and Market Valuation: An Empirical Analysis.” Journal of Financial Economics, 20 (1988), 293315.Google Scholar
Murphy, K. “Executive Compensation.” In Handbook of Labor Economics, Vol. 3. Ashenfelter, O. and Card, D., eds. Amsterdam: North Holland (1999).Google Scholar
Nenova, T.The Value of Corporate Voting Rights and Control: A Cross-Country Analysis.” Journal of Financial Economics (forthcoming 2003).Google Scholar
Nicodano, G.Business Groups, Dual Class Shares and the Value of the Voting Right.” Journal of Banking and Finance, 22 (1998), 11171137.CrossRefGoogle Scholar
Perotti, E. C., and Gelfer, S.. “Red Barons or Robber Barons? Governance and Investment in Russian Financial-Industrial Groups.” European Economic Review, 45 (2001), 16011617.Google Scholar
Perotti, E. C., and von Thadden, E.-L.. “Strategic Transparency and Informed Trading: Will Capital Market Integration Force Convergence of Corporate Governance?Journal of Financial and Quantitative Analysis, 38 (2003), 6185.CrossRefGoogle Scholar
Pinegar, M., and Ravichandran, R.. “U.S. Investors Perceptions of Corporate Control in Mexico: Evidence from Sibling ADRs.” Journal of Financial and Quantitative Analysis, 38 (2003), 213230.Google Scholar
Prowse, S. D.The Structure of Corporate Ownership in Japan.” Journal of Finance, 47 (1992), 11211141.Google Scholar
Rajan, R.; Servaes, H.; and Zingales, L.. “The Cost of Diversity: The Diversification Discount and Inefficient Investment.” Journal of Finance, 55 (2000), 3579.Google Scholar
Rajan, R. G., and Zingales, L.. “Financial Dependence and Growth.” American Economic Review, 88 (1998), 559586.Google Scholar
Rajan, R. G., and Zingales, L.. “The Governance of the New Enterprise.” In Corporate Governance, Vives, X., ed. New York, NY: Cambridge Univ. Press (2000).Google Scholar
Reese, W. A. Jr., and Weisbach, M. S.. “Protection of Minority Shareholder Interests, Cross-listings in the United States, and Subsequent Equity Offerings.” Journal of Financial Economics, 66 (2002), 65104.Google Scholar
Renneboog, L.Ownership, Managerial Control and the Corporate Governance of Companies Listed on the Brussels Stock Exchange.” Journal of Banking and Finance, 24 (2000), 19591995.CrossRefGoogle Scholar
Rodriguez, E. F., and Anson, S. G.. “Wealth Effects Associated with the Compliance with the Code of Best Practice: The Spanish Experience.” Working Paper, Univ. of Oviedo (2001).Google Scholar
Rydqvist, K.Empirical Investigation of the Voting Premium.” Working Paper, Northwestern Univ. (1988).Google Scholar
Sarkar, J., and Sarkar, S.. “Large Shareholder Activism in Corporate Governance in Developing Countries: Evidence from India.” International Review of Finance, 1 (2000), 161194.Google Scholar
Scharfstein, D. S.The Dark Side of Internal Capital Markets II: Evidence from Diversified Conglomerates.” Working Paper, NBER (1998).Google Scholar
Servaes, H.The Value of Diversification during the Conglomerate Merger Wave.” Journal of Finance, 51 (1996), 12011226.Google Scholar
Shin, H., and Park, Y. S.. “Financing Constraints and Internal Capital Markets: Evidence from Korean Chaebols.” Journal of Corporate Finance, 5 (1999), 169191.Google Scholar
Shleifer, A., and Vishny, R. W.. “A Survey of Corporate Governance.” Journal of Finance, 52 (1997), 737783.Google Scholar
Short, H., and Keasey, K.. “Managerial Ownership and the Performance of Firms: Evidence from the U.K.Journal of Corporate Finance, 5 (1999), 79101.Google Scholar
Smith, A.An Inquiry Into the Nature and Causes of the Wealth of Nations. Amherst, NY: Prometheus Books (1776).Google Scholar
Suchard, J.; Singh, M.; and Barr, R.. “The Market Effects of CEO Turnover in Australian Firms.” Pacific Basin Finance Journal, 9 (2001), 127.Google Scholar
Vafeas, N., and Theodorou, E.. “The Association between Board Structure and Firm Performance in the U.K.British Accounting Review, 30 (1998), 383407.Google Scholar
Valadares, S. M., and Leal, R. P. C.. “Ownership and Control Structure of Brazilian Companies.” Working Paper, Universidade Federal do Rio de Janeiro (2000).Google Scholar
Volpin, P. F.Governance with Poor Investor Protection: Evidence from Top Executive Turnover in Italy.” Journal of Financial Economics, 64 (2002), 6190.CrossRefGoogle Scholar
Weisbach, M.Outside Directors and CEO Turnover.” Journal of Financial Economics, 20 (1988), 431460.Google Scholar
Whited, T. M.Is It Inefficient Investment That Causes the Diversification Discount?Journal of Finance, 56 (2001), 16671692.Google Scholar
Wojcik, D.Change in the German Model of Corporate Governance: Evidence from Blockholdings 1997–2001.” Working Paper, Univ. of Oxford (2001).Google Scholar
Wurgler, J.Financial Markets and the Allocation of Capital.” Journal of Financial Economics, 58 (2000), 187214.Google Scholar
Wymeersch, E. “A Status Report on Corporate Governance Rules and Practices in Some Continental European States.” In Comparative Corporate Governance. The State of the Art and Emerging Research, Hopt, K. J., Kanda, H., Roe, M. J., Wymeersch, E., Prigge, S., eds. Oxford: Clarendon Press (1998).Google Scholar
Xu, X., and Wang, Y.. “Ownership Structure, Corporate Governance, and Firms' Performance: The Case of Chinese Stock Companies.” Working Paper, World Bank (1997).Google Scholar
Zingales, L.The Value of the Voting Right: A Study of the Milan Stock Exchange Experience.” Review of Financial Studies, 7 (1994), 124148.CrossRefGoogle Scholar
Zingales, L.. “What Determines the Value of Corporate Votes?Quarterly Journal of Economics, 110 (1995), 10751110.Google Scholar