EconPapers    
Economics at your fingertips  
 

Restructuring the Board: How Stock Exchanges Can Succeed as For-Profit Firms

Faten Ben Slimane and Laura Padilla Angulo ()
Additional contact information
Laura Padilla Angulo: Universidad Loyola Andalucía = Loyola University Andalucía

Authors registered in the RePEc Author Service: Laura Padilla Angulo

Post-Print from HAL

Abstract: We conduct a field experiment using stock exchanges, many of which were forced to demutualize and convert to for-profit structures due to increased competition and technological advances, to study corporate governance restructuring measures to adapt to new market conditions. The financial performance of the stock exchanges we studied significantly improved after their conversion to for-profit organizations and provide an example of successful corporate governance restructuring. We find that the stock exchanges restructured board composition and refocused them to create better value. The exchanges also reorganized their management teams and increased their performance-related compensation. Results suggest that the conversion of a company to a for-profit structure brings efficiencies when accompanied by changes in the governing bodies and the incentive structures. We also find that converting to for-profit firms had a positive impact on the reputation of the exchanges. The positive impact was even greater when accompanied by changes in board composition. Our results are relevant not only to the financial industry but to firms in other sectors considering going public.

Keywords: For-profit firm; stock exchanges; reputation; strategy; board of directors; top management teams (search for similar items in EconPapers)
Date: 2017-06
References: Add references at CitEc
Citations:

Published in AFFI Conference, Jun 2017, Valence, France

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:hal-01583860

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-03-19
Handle: RePEc:hal:journl:hal-01583860