Jong, A. de DeJong, D.V. Mertens, G. (Tilburg University, Center for Economic Research)
Abstract
The purpose of this paper is to gather evidence on the success of market forces in promoting investor interests through self-regulation. Corporate governance is a complex mechanism design problem that is both economic and legal/political based. As such there is great interest in whether (and when) market forces alone are sufficient to prompt change, and whether (and when) additional legal/political actions are required to write and enforce contracts between the owners and managers of capital. The Netherlands provides an excellent opportunity to gather such information. In 1996, a private sector Committee was formed to initiate debate and change in the balance of power between a company's management and investors. In 1997, the Committee issued its recommendations and one year later the Committee initiated a project to assess the impact of the report. We identify the corporate governance variables that are linked to firm value and assess the impact of the committee's recommendations on the identified variables. Finally, we use event study techniques to assess investors reactions to the various events associated with the evolution of corporate governance practices in the Netherlands during this period.
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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number
59.
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Find related papers by JEL classification: F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation K22 - Law and Economics - - Regulation and Business Law - - - Corporation and Securities Law
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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[Downloadable!] (restricted)
Other versions:
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[Downloadable!] (restricted)
Other versions:
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[Downloadable!] (restricted)
Other versions:
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"Law and Finance,"
NBER Working Papers
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Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Roosenboom, P.G.J. & Goot, T. van der, 2003.
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