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Leveling of the playing field and corporate financing patterns around the world

Author

Listed:
  • Knill, April M.
  • Lee, Bong Soo
  • Ang, James

Abstract

The level of parity between management of firms and their shareholders vary around the world. In many countries, the playing field is tilted in favor of management, which can withhold information or selectively choose when and how to release it. Self-interested managers may also expropriate from shareholders. The legal, judicial, and political systems are also often in favor of those with wealth and power, and interested parties with the resources to level the playing field may be absent or ineffective. These countries lack the monitors, from large institutional shareholders to financial analysts, to limit management's advantage over the shareholders.

Suggested Citation

  • Knill, April M. & Lee, Bong Soo & Ang, James, 2021. "Leveling of the playing field and corporate financing patterns around the world," Global Finance Journal, Elsevier, vol. 47(C).
    • Handle: RePEc:eee:glofin:v:47:y:2021:i:c:s1044028319302832
    DOI: 10.1016/j.gfj.2020.100515
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    More about this item

    Keywords

    International financing; Issuing stocks; Capital structure;
    All these keywords.

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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