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

Author

Listed:
  • Jean-Claude Cosset
  • Hyacinthe Y. Somé
  • Pascale Valery

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.

Suggested Citation

  • Jean-Claude Cosset & Hyacinthe Y. Somé & Pascale Valery, 2012. "Does Competition Matter for Corporate Governance? The Role of Country Characteristics," Cahiers de recherche 1238, CIRPEE.
    • Handle: RePEc:lvl:lacicr:1238
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    File URL: http://www.cirpee.org/fileadmin/documents/Cahiers_2012/CIRPEE12-38.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Product market competition; Corporate governance; Economic and financial development; Investor protection;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L00 - Industrial Organization - - General - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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