Corporate Governance, Industry Dynamics and Firm Perfomance : an Empirical Analysis of a Best Practice Model
AbstractThis papers intends to relate more closely corporate governance, industry dynamics and firms performance. In this perspective, it focuses on the impact of applying the normative, best pratice, shareholder value model of corporate governance on industry dynamics and related performance measured by economic as well as financial indicators. At a theoritical level the paper presents an integrated framework based on the connaction between firms governance and industry dynamics issues. But the core of the paper is to advance that the combination of corporate governance and industry dynamics also requires important investigations into empirical aspects. At a case study level, our major finding is that the adoption of the best practice model of governance in the telecoms equipment supplier industry contributed to create large ups and downs in the industry dynamics affecting both economic and financial perfomances. At a more general level, combining two different datasets Corporate governance Quotient ( CGQ) and DATASTREAM, we show the variegated impact of the normative model on industry dynamics and confirm the observed phenomenon of ups and downs amplifications formerly emphasized, at least at the level of stock market perfomance.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (REL - Recherches Economiques de Louvain) with number 2008042.
Date of creation: 01 Dec 2008
Date of revision:
corporate gouvernance; industry dynamics; fim performance; stock markets; innovative versus traditional industries;
Other versions of this item:
- Jackie Krafft & Yiping Qu & Jacques-Laurent Ravix, 2008. "Corporate Governance, Industry Dynamics and Firms Performance: An Empirical Analysis of a Best Practice Model," Recherches économiques de Louvain, De Boeck Université, vol. 74(4), pages 455-478.
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- L80 - Industrial Organization - - Industry Studies: Services - - - General
- L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General
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- Jackie Krafft & Yiping Qu & Jacques-Laurent Ravix, 2011. "Gouvernance d'entreprise et performances sectorielles: une réévaluation de la fiabilité des scores et des mesures de bonne gouvernance," Post-Print hal-00493371, HAL.
- repec:hal:wpaper:hal-00786664 is not listed on IDEAS
- Jackie Krafft & Yiping Qu & Francesco Quatraro & Jacques-Laurent Ravix, 2013.
"Corporate governance, value and performance of firms: New empirical results on convergence from a large international database,"
- Jackie Krafft & Yiping Qu & Francesco Quatraro & Jacques-Laurent Ravix, 2013. "Corporate governance, value and performance of firms: New empirical results on convergence from a large international database," Post-Print hal-00786664, HAL.
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