To steal or not to steal: Firm attributes, legal environment, and valuation

• 成果类型: Article
• 署名作者: Durnev, A; Kim, EH
• 署名单位: University of Miami; University of Michigan System; University of Michigan
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2005.00767.x
• 发表日期: 2005
• 页码: 1461-1493
• 关键词: CORPORATE GOVERNANCE; Investor protection; EQUITY OWNERSHIP; LAW; specification; determinants; dependence; finance

摘要

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.