Why Do Italian Joint Stock Companies Adopt One or Two-Tier Board?

Carlo Bellavite Pellegrini (), Laura Pellegrini and Emiliano Sironi ()
Additional contact information
Emiliano Sironi: Depertment of Decision Sciences, Universita' Commerciale Luigi Bocconi

Rivista Internazionale di Scienze Sociali, 2010, vol. 118, issue 1, 3-25

Abstract: The possibility to choose between two alternative corporate governance systems (i. e. one-tier and two-tier board) was introduced in Italy by the Corporate Law Reform at the beginning of 2004. This reform, which provides for the adoption of a one- or a two-tier board for both listed and unlisted joint stock companies, has modified the traditional Italian corporate governance system based on a board of directors and an external audit committee, although the percentage of firms adopting the alternative systems is still low. This survey implements probit regressions in order to identify the determinants of the adoption of alternative corporate governance systems. Results provide evidence that corporations with better performances in terms of sales, such as corporations that are subject to control and coordination prefer to maintain a traditional system. Conversely, firms with ownership in the hands of a high proportion of individual shareholders prefer a one-tier model.

Keywords: Corporate governance; One tier and two tier board; Joint stock companies (search for similar items in EconPapers)
JEL-codes: G34 K22 M42 (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://riss.vitaepensiero.it/scheda-articolo_digit ... 001_0003-150959.html (text/html)
Yes

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vep:journl:y:2010:v:118:i:1:p:3-25

Access Statistics for this article

Rivista Internazionale di Scienze Sociali is currently edited by Maurizio Baussola

More articles in Rivista Internazionale di Scienze Sociali from Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore
Bibliographic data for series maintained by Vep - Vita e Pensiero ().