Using a unique sample, we attempt to identify the consequence of the separation between inside ownership and control for firm performance. We exploit the fact that banking institutions may hold their own shares in trust to construct a clean...Read more
We test the 'law matters' and 'legal origin' claims using a newly created panel dataset measuring legal change over time in a sample of developed and developing countries. Our dataset improves on previous ones by avoiding country-specific...Read more
In 2008, share prices on U.S. stock markets fell further than they had during any one year since the 1930s. Does this mean corporate governance “failed”? This paper argues “no”, based on a study of a sample of companies at “ground zero” of the...Read more
News Corp. is currently at the centre of a major corporate crisis, which began in the U.K. with the notorious phone hacking scandals, but is now spreading to the U.S. There have been recent amendments to pleadings in Amalgamated Bank v. Murdoch (...Read more
Many policy-makers appear to subscribe to the view that granting shareholders more rights is better. The recently revised EU Shareholder Rights...Read more
10 April 2017
We conduct an exploratory analysis of how researchers can address the issue of “construct validity”, which poses a major challenge to all studies of the effect of corporate governance on firm performance. Many corporate governance studies rely on aggregate governance “indices” to measure underlying, unobserved governance. But we are not confident that we know how to build these indices – often we are unsure both as to what is “good” governance, and how one can proxy for this vague concept using observable measures. These are construct validity questions.