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)

Downloads: (external link)
https://geary.ucd.ie/workingpapers/workingpapers/gearywp201117.pdf (application/pdf)

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)
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:ucd:wpaper:201117

Access Statistics for this paper

More papers in Working Papers from Geary Institute, University College Dublin Contact information at EDIRC.
Bibliographic data for series maintained by Geary Tech ( this e-mail address is bad, please contact ).