1,721,017 research outputs found
Corporate Governance, Capital MarketDiscipline and the Returns on Investment
Full text linkWe analyze the impact of corporate governance institutions, ownership structures andexternal capital market constraints on company returns on investment by using a sampleof more than 19,000 companies from 61 countries across the world. We show that (1) ofthese three sets of institutions, the origin of a country’s legal system proves to be themost important. Companies in countries with English-origin legal systems earn returnson investment that are at least as large as the cost of capital. (2) Differences ininvestment performance related to a country’s legal system dominate differences relatedto ownership structure. (3) Strong external capital markets improve the investmentperformance of companies. ZUSAMMENFASSUNG - (Corporate Governance, Kapitalmarktdisziplinierung und die Renditen vonUnternehmensinvestitionen) Dieses Papier analysiert den Einfluss von Corporate Governance Institutionen, Eigentümerstrukturen und externen Kapitalmärkten auf die Renditen von Investitionen für ein Sample von mehr als 19.000 Unternehmen aus 61 Ländern weltweit. Wir zeigen, dass von diesen drei Institutionen (1) die Herkunft des Rechtssystems eines Landes der wichtigste Faktor ist. Unternehmen in Ländern mit Rechtssystemen englischer Herkunft verdienen Renditen, die die Kapitalkosten im Durchschnitt abdecken. (2) Unterschiede im Rechtssystem eines Landes dominieren Unterschiede in der Eigentümerstruktur. (3) Funktionierende externe Kapitalmärkte verbessern die Performance von Investitionen.Return on Investment, Ownership Structure, Coporate Governance, Capital Market
Is the Event Study Methodology Useful for Merger Analysis? A Comparison of Stock Market and Accounting Data
Full text linkWe use a sample of 167 mergers during the period 1990-2002 involving 544 firms either as merging firms or competitors. We contrast a measure of the merger’s profitability based on event studies with one based on accounting data. We find positive and significant correlations between them when using a long window around the announcement date. ZUSAMMENFASSUNG - (Ist die "event study" Methodologie nützlich für die Analyse von Fusionen? Ein Vergleich von Aktienmärkte und Bilanzdaten) Wir analysieren eine Stichprobe von 167 Fusionen, die zwischen 1990 und 2002 stattgefunden haben und welche 544 Unternehmen -entweder als fusionierende Parteien oder als Wettbewerber- involviert haben. Wir vergleichen eine auf "event studies" basierende Rentabilitätsmaß der Fusion zu einer alternativen Maß, die durch Bilanzdaten konstruiert wurde. Wir finden, dass diese zwei maße positiv und signifikant korrelieren besonders wenn wir ein langes Fenster um die Fusionsankündigung in dem "event study" benutzen.Mergers, Merger Control, Event Studies, Ex-post Evaluation
Corporate Governance and Development
No full textWhat do we know about the links between
economic development and corporate governance in emerging
markets? Stijn Claessens and Burcin Yurtoglu have sifted
through scores of academic studies on various countries,
sectors, and business organizations - from state-owned
enterprises to publicly listed companies - to determine how
corporate governance can influence economic development and
well being, and what is needed to promote good practices.
The Focus 10 draws on new evidence that has become available
since Focus 1: Corporate Governance and Development was
published in 2003. While the paper reviews research
literature, it is written to be accessible to the
nonacademic audience: board members, investors, government
regulators, development professionals, and other CG
practitioners. Research findings sited in the Focus include:
1) improved corporate governance practices increase firm
share prices; 2) operational performance is higher in better
corporate governance countries; 3) well governed companies
have less volatile stock prices in times of crisis; 4)
companies with boards composed of a higher fraction of
outsider or independent directors usually have a higher
market valuation; 5) improvements in corporate governance
quality lead to higher GDP growth, productivity growth, and
the increased ratio of investment to GDP; 6) when a
country's overall corporate governance and property
rights systems are weak, voluntary and market corporate
governance mechanisms have limited effectiveness; 7) large,
more concentrated ownership can be beneficial, unless there
is a disparity of control and cash flow rights; 8) the
quality of shareholder protection positively correlates with
the development of countries' capital markets; and 9)
better corporate governance leads to a better developed
financial system. The paper concludes by identifying several
main policy and research issues that require further study.
For example, more research is needed on family-owned,
state-owned or controlled firms that predominate in many
sectors and economies. For more publications on IFC
Sustainability please visit www.ifc.org/sustainabilitypublications
Corporate Governance and Implications for Minority Shareholders in Turkey
Full text linkThis paper reports on the ownership and control structures of publicly listed firms in Turkey using data from 2001. While holding companies and non-financial firms are the most frequent owners at the direct level, families ultimately own more than 80 percent of all publicly listed firms in Turkey. Pyramids and dual class shares are common devices that families use to separate their cash-flow rights from control rights. We also show that such deviations result in significantly lower market to book ratios suggesting large agency costs because of the conflict of interests between controlling families and minority shareholders.Ownership Structure, Corporate Governance, Business Groups, Family Ownership, Turkey
Persistence of firm-level profitability in Turkey
No full textThe dynamics of company profits for 172 of the largest manufacturing firms in Turkey are studied. A time-series analysis is used to estimate the long-run projected profits and firm-specific speed of adjustment parameters that measures the rate at which short-run rents are eroded. While persistent profitability differences across firms are observed, there is also a moderately quick erosion of rents except for the most highly profitable firms. Firm characteristics rather than industry effects account for the differences in permanent profits. Contrary to the widespread view that developing countries suffer from uncompetitive markets, the results in this paper suggest that the intensity of competition in Turkey is no less than in developed countries and similar to other developing countries.
Going Beyond Counting First Authors in Author Co-citation Analysis
Full text linkThe present study examines one of the fundamental aspects of author co-citation analysis (ACA) - the way co-citation
counts are defined. Co-citation counting provides the data on which all subsequent statistical analyses and mappings
are based, and we compare ACA results based on two different types of co-citation counting - the traditional type that
only counts the first one among a cited work's authors on the one hand and a non-traditional type that takes into
account the first 5 authors of a cited work on the other hand. Results indicate that the picture produced through this non-traditional author co-citation counting contains more coherent author groups and is therefore considerably clearer. However, this picture represents fewer specialties in the research field being studied than that produced through the traditional first-author co-citation counting when the same number of top-ranked authors is selected and analyzed. Reasons for these effects are discussed
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