Corporate governance and life cycles in emerging markets

Omar Esqueda and O’Connor, Thomas

Research in International Business and Finance, 2020, vol. 51, issue C

Abstract: Whereas the corporate life cycle hypothesis says firms follow structured goals along their life cycle, others argue that corporate governance objectives vary independently of predetermined life cycle stages. This study examines the impact of the corporate life cycle on corporate governance in emerging markets, where firms can self-select into stricter rules by adopting an exchange listing level that fits the governance needs of the organization independently of life cycle requirements. We find the listing-level decision is a better predictor of corporate governance quality than corporate life cycle. Firms signal improvements in corporate governance by bonding to more stringent regulation; they determine the corporate governance quality that matches their needs at any point during their life-cycle.

Keywords: Agency theory; Bovespa; Corporate governance; Corporate life cycle; Emerging markets; Novo mercado (search for similar items in EconPapers)
JEL-codes: G30 G32 G34 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: Corporate governance and life-cycles in emerging markets (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:51:y:2020:i:c:s0275531919306968

DOI: 10.1016/j.ribaf.2019.101077

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