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Investability, Corporate Governance and Firm Value

  • Thomas O'Connor

    ()

    (Department of Economics Finance and Accounting, National University of Ireland, Maynooth)

In this paper, I show that “investable premia” are greatest for transparent, well-governed firms. I find that single-class share investable firms and better-governed firms reap the largest valuation gains from becoming investable. Dual-class share firms do gain from becoming investable, but their gains are much lower than that of single-class share firms. These findings suggest that the failure on the part of firms to remedy agency conflicts prior to becoming investable only serves to greatly reduce, or even nullify their “investable premia”.

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File URL: http://repec.maynoothuniversity.ie/mayecw-files/N223-12.pdf
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Paper provided by Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n223-12.pdf.

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Length: 26 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:may:mayecw:n223-12.pdf
Contact details of provider: Postal:
Maynooth, Co. Kildare

Phone: 353-1-7083728
Fax: 353-1-7083934
Web page: http://www.maynoothuniversity.ie/economics-finance-and-accounting

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