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Does Competition Matter for Corporate Governance? The Role of Country Characteristics

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  • Jean-Claude Cosset
  • Hyacinthe Y. Somé
  • Pascale Valery
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    Abstract

    We investigate the empirical relation between competition and corporate governance and the effect of country characteristics on this relation. We find that competition is associated with strong corporate governance, but only in less developed countries. We next examine the impact of corporate governance on firm value given the level of competition. We find that competition and corporate governance appear to be complements in explaining firm value in developing countries, while in developed countries they are substitutes.

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    File URL: http://www.cirpee.org/fileadmin/documents/Cahiers_2012/CIRPEE12-38.pdf
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    Bibliographic Info

    Paper provided by CIRPEE in its series Cahiers de recherche with number 1238.

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    Date of creation: 2012
    Date of revision:
    Handle: RePEc:lvl:lacicr:1238

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    Related research

    Keywords: Product market competition; Corporate governance; Economic and financial development; Investor protection;

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