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Investability, corporate governance and firm value
O'Connor, Thomas G.
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”.
Keyword(s): Investability; Corporate governance; Tobin’s q
Publication Date:
2012
Type: Journal article
Peer-Reviewed: Yes
Institution: Maynooth University
Citation(s): O'Connor, Thomas G. (2012) Investability, corporate governance and firm value. Research in International Business and Finance, 26 (1). pp. 120-136. ISSN 0275-5319
Publisher(s): Elsevier
File Format(s): other
Related Link(s): http://mural.maynoothuniversity.ie/8837/1/TOC_investability%20corp%202012.pdf
First Indexed: 2020-04-02 06:26:46 Last Updated: 2020-04-02 06:26:46