This paper examines the determinants of board composition and firm valuation as a function of board composition in Taiwan - a country that features relatively weak protection for investors, firms with controlling shareholders, and pyramidal groups. The results suggest that there is poor...

This paper reports an average negative 56 percent buy-and-hold market-adjusted stock return of emerging market entrepreneurial/family firms during a 5-year period in which their controlling owners pass on ownership and control to their successors. The value destruction is importantly...

This paper reports an average negative 56 percent buy-and-hold market-adjusted stock return of emerging market entrepreneurial/family firms during a 5-year period in which their controlling owners pass on ownership and control to their successors. The value destruction is importantly...

This paper investigates the benefits and associated agency costs of using internal capital markets through affiliating with groups using data of two thousand firms from nine East Asian economies between 1994-96. We find that mature and slow-growing firms with ownership structures more likely to...

In emerging markets, the concentration of corporate ownership has created agency conflicts between controlling owners and minority shareholders, which are difficult to mitigate through conventional corporate control mechanisms such as boards of directors and takeovers. This study examines...

In emerging markets, the concentration of corporate ownership has created agency conflicts between controlling owners and minority shareholders. Conventional corporate control mechanisms such as boards of directors and takeovers are typically weak in containing the agency problem. This study...

China is now the world's largest destination of foreign direct investment (FDI), despite assessments highlighting its institutional deficiencies. But this FDI inflow corresponds closely to predicted FDI flows into China from a model that predicts FDI inflow based on government quality indicators...

In environments where the legal system and market disciplinary forces are weak to enforce contracts, vertical integration is a means to overcome transaction difficulties. Yet, these weak institution environments are also characterised by high government interventions and even corruption....

This study examines the influence of institutional environment on capital structure and debt maturity choices by examining a cross-section of firms in 39 developed and developing countries. We find that a country's legal and tax system, the level of corruption and the preferences of capital...

Employing commodity flow data from input-output (IO) tables, we construct two IO-based relatedness measures to capture inter-industry and inter-segment vertical relatedness and complementarity. At the industry level, we demonstrate that the new IO-based measures outperform traditional measures...