When is two really company?: the effects of competition and regulation on corporate governance

Udayasankar, Krishna and Das, Shobha S. and Krishnamurti, Chandrasekhar (2008) When is two really company?: the effects of competition and regulation on corporate governance. In: 12th New Zealand Finance Colloquium, 14-15 Feb 2008, Palmerston North, New Zealand.

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Abstract

In this paper we bring together agency, stakeholder, institutional and resource-dependence theories to study the direct and interactive effects of country regulation and competition on two dimensions of corporate governance: the overall quality of corporate governance of firms in a country, and firm-to-firm variations in corporate governance. Interactive conditions are more representative of the real-world context of corporate governance, and the contradictory pressures that firms face in such interactive conditions are better explained through the use of multiple theories of corporate governance. Using a dataset that spans 15 countries and includes 463 firms, we find that firm corporate governance is better in conditions where either regulation or competition is well-developed, by comparison with interactive conditions. We also find that while regulation enhances within- country convergence, it is likely that competition serves to enhance across-country convergence.

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Item Type:	Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed:	Yes
Item Status:	Live Archive
Additional Information:	Co-winner of the Best-Paper prize at the ISCR NZ Finance Colloquium held in Palmerston North on February 14-15. Nhut Nguyen and Henk Berkman for 'Investor protection and the US cross-listing decision: a cross-country analysis of domestic liquidity costs'. Krishna Udayasankar, Shobha Das and Chandrasekhar Krishnamurti for 'When is two really company? The effects of competition and regulation on corporate governance.'
Faculty / Department / School:	Historic - Faculty of Business - School of Accounting, Economics and Finance
Date Deposited:	23 Feb 2010 10:41
Last Modified:	23 Jul 2014 23:37
Uncontrolled Keywords:	corporate governance; country regulation and competition
Fields of Research :	15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150201 Finance
Socio-Economic Objective:	B Economic Development > 90 Commercial Services and Tourism > 9001 Financial Services > 900101 Finance Services
URI:	http://eprints.usq.edu.au/id/eprint/6718

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