Legal protection of investors, corporate governance, and investable premia in emerging markets

Stephen Kinsella (), Thomas O'Connor () and Vincent O'Sullivan

No 201117, Working Papers from Geary Institute, University College Dublin

Abstract: We examine the interaction between the legal protection of investors, corporate governance within firms, institutional development between countries, and investable premia in emerging markets. In a multi country setting and using a novel dataset we find that better-governed firms experience significantly greater stock price increases upon equity market liberalization. We look to see whether well-governed firms in poorly governed countries enjoy an investability premium as measured by Tobin’s q. We find they do. Investors look beyond the seemingly weak country-level governance structures, and focus on corporate governance.

Keywords: Investability; Corporate Governance; Tobin's q; Emerging Markets (search for similar items in EconPapers)
JEL-codes: G15 G17 G18 G19 G20 G21 G22 G23 G24 G28 G29 G30 G34 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2011-08-22
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Legal protection of investors, corporate governance, and investable premia in emerging markets (2014)
Working Paper: Legal protection of investors, corporate governance, and investable premia in emerging markets (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ucd:wpaper:201117

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