Firm level corporate governance in emerging markets

a case study of India

Publisher: Indian Institute of Management Bangalore in Bangalore

Written in English
Published: Pages: 42 Downloads: 922
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Edition Notes

Microfiche. New Delhi : Library of Congress Office ; Washington, D.C. : Library of Congress Photoduplication Service, 2009. x microfiches Master microform held by: DLC.

Statementby N. Balasubramanian, Bernard S. Black, Vikramaditya Khanna.
Classifications
LC ClassificationsMicrofiche#
The Physical Object
FormatMicroform
Pagination42 p.
Number of Pages42
ID Numbers
Open LibraryOL23393135M
LC Control Number2009311652

Relatively little is known about the corporate governance practice of firms in emerging markets. We provide a detailed overview of the practices of publicly traded firms in India, and identify areas where governance practices are relatively strong or weak, relative to developed countries. We also examine whether there is a cross-sectional relationship between measures of governance and Cited by: The Relation Between Firm-level Corporate Governance and Market Value: A Case Study of India. By: N. Balasubramanian *, Bernard S. Black † & Vikramaditya Khanna †† I. Introduction. We know relatively little about the corporate governance practices of public firms in emerging markets. This paper offers two principal by: TCW Emerging Markets Income Fund seeks out what the portfolio managers believe are the best fixed income opportunities in emerging markets, an important and growing segment of the global economy. The Fund invests in hard currency sovereign debt, corporate debt, and local currency debt. However, the relationship between corporate governance and the value of a firm (the CGVF relationship) differs in developing and developed financial markets due to disparate corporate governance structures in these markets resulting from the dissimilar social, economic and regulatory conditions in these countries.

Corporate governance and returns to emerging economy firm acquisitions in tax havens: An empirical test on Indian firms offer large markets or complementary assets (e.g., natural resources or advanced technologies) that have been noted to drive positive stock- were greater for firms with better firm-level corporate governance. Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of a company's. and corporate governance. Studies such as Baumol () and Aghion and Durlauf () have examined the role of technological change at the macro level, but the little we know of firm innovation is based on the study of large, publicly traded firms in developed countries such as the United States. However, recent research has shown.   The control variables in all tests are the log of the market capitalization of the firm (log size), the firm book-to-market ratio, leverage ratio, the change in earnings (income before extraordinary items) from the previous fiscal year, scaled by the total assets of the firm, and an indicator variable that takes the value 1 if the firm Cited by:

of corporate governance to financial performance in emerging markets investment and encourage any prudent investor or lending institutions to develop approaches for assessing corporate governance risk factors in addition to the traditional credit and financial risk factors. I encourage investment professionals, company owners and executives. on our corporate governance index also enjoy higher price-to-book ratios.5 This is true even after we controlled for a company’s financial performance and other firm characteristics, Corporate governance develops in emerging markets Shareholders in emerging markets show they’re willing to pay a premium for good governance Size: 83KB. Palo Alto office of a BCG Attorney Search Top Ranked Law Firm seeks corporate (securities/capital markets) associate attorney with years of experience in securities, public company, private company and corporate governance.   Market-Based Corporate Governance System: A system relying on the investors of a firm to exert control over how the corporation is to be managed. A market-based corporate governance system defines.

Firm level corporate governance in emerging markets Download PDF EPUB FB2

Firm-Level Corporate Governance in Emerging Markets: A Case Study of India ECGI - Law Working Paper /, 2nd Annual Conference on Empirical Legal Studies Paper, U of Michigan Law & Economics, Olin Working PaperU of Texas Law, Law and Econ Research Paper No.

87, Northwestern Law & Econ Research Paper No. Cited by:   These risks require investors to have a much better understanding of the firm-level governance factors in different markets.

The Complexity of What Matters in Emerging Markets. Over the past two decades, the relationship between corporate governance and firm performance has received considerable attention from inside and outside academia. It seems that a core difficulty in these markets has been the principal–principal agency problem between majority shareholders and minority shareholders, and the risk of expropriation.

A firm-level governance solution to attract investment and build confidence is to improve the levels of corporate transparency and disclosure quality in EMs. A second goal of this paper is to contribute to the literature on the connection between firm-level governance and firm market values in emerging markets.

A number of cross-country studies examine this connection (e.g., Aggarwal et al.,Klapper and Love,Durnev and Kim,Doidge et al., ; see also the survey by Love Cited by: Corporate governance, investor protection, and performance in emerging markets (English) Abstract.

Recent research Firm level corporate governance in emerging markets book the link between law, and finance has concentrated on country-level investor protection measures, and focused on differences in legal systems across countries, and legal by: Firm-Level Corporate Governance in Emerging Markets: A Case Study of India ECGI - Law Working Paper /, 2nd Annual Conference on Empirical Legal Studies Paper, U of Michigan Law & Economics, Olin Working PaperU of Texas Law, Law and Econ Research Paper No.

87, Northwestern Law & Econ Research Paper No. Cited by: The authors identify a serious gap in research on emerging markets between high-level cross-country studies, with their inconclusive findings on good governance indicators at the macro level, and the separate effort to establish firm-level or country-specific governance metrics, typically based on what works 'in the West.'.

Introduction. There is evidence that broad measures of firm-level corporate governance predicts higher share prices in emerging markets.

This evidence comes from both single-country studies (Black, on Russia; Black et al., a on Korea; Gompers et al., on the U.S.) and multicountry studies (Durnev and Kim,Klapper and Love, ). Cited by: Thus, in emerging markets, firm-level corporate governance and country- le vel shareholder protection seem to be substitutes for each other in reducing the cost of equity.

Love extend this literature and provide a study of firm- enforcement by establishing good corporate governance level corporate governance practices across emerging and providing credible investor protection.

The authors' markets and a greater understanding of the environments tests also show that firm-level governance and. Downloadable (with restrictions). Recent research studying the link between law, and finance has concentrated on country-level investor protection measures, and focused on differences in legal systems across countries, and legal families.

The authors extend this literature, and provide a study of firm-level corporate governance practices across emerging markets, and a greater understanding of.

We investigate the firm characteristics associated with innovation in o firms across 47 developing economies. While existing finance literature on innovation is limited to large public firms in developed markets such as the United States, our database includes public and private firms, and small and medium-sized by: Corporate Governance, Investor Protection, and Performance in Emerging Markets on country-level investor protection measures and focused on differences in legal systems across countries and legal families.

Klapper and Love extend this literature and provide a study of firm-level corporate governance practices across emerging markets and a. "Corporate Governance, Investor Protection, and Financial Stability in Emerging Markets" in October Global Financial Stability Report Firm-level evidence for emerging markets is.

families. We use recent data on firm-level corporate governance rankings across 14 emerging markets and find that there is wide variation in firm-level governance across countries in our sample and that the average firm-level governance is lower in countries with weaker legal systems.

Corporate governance and firm value in emerging markets: An empirical analysis of ADR issuing emerging market firms. Emerging Markets Journal, 2 (1), 38– doi: /emaj Cited by: 2. The IMF created a new firm-level governance index, and found that emerging market firms outside of Latin America and Asia show the largest improvements since (see Figure 1).

Even so, there are important differences across emerging market economies, and there is. Corporate Governance and Firm Performance. Front Matter. Pages This book fills the gap between theories and practices of corporate governance in emerging markets by providing the reader with an in-depth understanding of governance mechanisms, practices and cases in these markets.

Investors can benefit from this book to better. Downloadable (with restrictions). This study examines the effect of firm-level corporate governance on the cost of equity capital in emerging markets and how the effect is influenced by country-level legal protection of investors.

We find that firm-level corporate governance has a significantly negative effect on the cost of equity capital in these markets. The data was then used to determine whether firm-level corporate governance, board characteristics, shareholder rights and vision and strategy are associated with corporate cash holdings.

The study found that for the selected sample, firm-level corporate governance is negatively correlated to corporate cash holdings in emerging markets. Latham’s Corporate Governance Practice is global in scope.

In addition to counseling on governance matters at the board and senior executive level, Latham’s corporate governance, securities regulation, and crisis litigation teams provide advice and support to boards and senior executives in transactional and crisis management situations.

empirical evidence on the effect of corporate governance on firm valuation. We begin by describing the dataset in Section 1. Section 2 compares the differences in transparency and disclosure levels at the end of the year among emerging markets, regions, and Cited by: : Corporate Governance & Firm Performance: Emerging Market Financial Institutions Analysis (): Chiromba, Campion: Books.

sential for corporate governance di sclosure to be efficient. Keywords: Corporate governance, disclosure, emerging markets, transparency, price to book ratio, return on equi ty, governance environment 1 Introduction Corporate governance refers to the structures and relationships that determine the way in.

Khanna & Black, India Corporate Governance Overview 1 1 THE RELATION BETWEEN FIRM-LEVEL CORPORATE GOVERNANCE AND MARKET VALUE: A STUDY OF INDIA (nearly final version: forthcoming in Emerging Markets Review, vol. 11, pp. xxx-yyy, ) N. Balasubramanian, Indian Institute of Management, Bangalore Bernard S.

Black, University of Texas at Austin. Firm-Level Corporate Governance in Emerging Markets: A Case Study of India. Balasubramanian and B.

Black, co-authors. European Corporate Governance Institute, Working Paper Series in Law No. /; University of Michigan Law & Economics, Olin Working Paper Series No. Working Paper.

(Last revised July ) Full Text: SSRN. 3. Corporate Governance and Corporate Finance in Emerging Markets: Some Anomalies. Further insights into the nature of the corporate governance problems in DCs are provided by examining the relationship between corporate finance and corporate governance in these countries.

The two are closely related almost by by: Keywords: Corporate Governance, Company Valuation, Corporate Board, Emerging Markets, Middle East, United Arab Emirates (UAE), Abu Dhabi Stock Exchanges (ADX) How to cite this paper: Adawi, M., & Rwegasira, K.

Corporate governance and firm valuation in emerging markets: evidence from UAE listed companies in the Middle : Mohamed Adawi, Kami Rwegasira. alternative corporate governance measures associated with the origin of the issuing firm.

Although the ADR literature primarily focuses on the impact of subscription to US disclosure requirements we contend that company and country specific corporate governance standards play a significant role in the risk reduction and ensuing value by: 9.

level corporate governance practices across emerging and providing credible investor protection. The authors' markets and a greater understanding of the environments tests also show that firm-level governance and under which corporate governance matters more.

Their performance is lower in countries with weak legalFile Size: KB. Part D: Critical Issues for Corporate Governance in Developing and Emerging Markets.

Chapter Corporate Governance and State-Owned Firms: The Case of Brazil Alexandre Coelho. Chapter Corporate Governance under Islam: Islamic Republic of Iran Surendra Arjoon. Chapter This study explores the value implications of good corporate governance for a sample of 54 ADR issuing emerging market firms (EMFs) from 9 countries primarily located in the regions of Asia, Eastern Europe and Latin America and the and employs recently constructed company composite corporate governance metric along with some alternative corporate governance measures associated with the origin Cited by: 9.Practical Guide to Corporate Governance Figure Relative Valuation by Family Ownership in Emerging Markets 0 5 10 Relative Valuation (%) Family Ownership 0%% 10%% 25%% 50%% 75%% Sources: FactSet and Citigroup Financial Strategy Group Research quantifies the value of good governance in family businesses.

In a File Size: 1MB.