Published in:
Journal of Financial and Quantitative Analysis, 51 (2016) 4, Seite 1231-1267
Language:
English
DOI:
10.1017/s0022109016000648
ISSN:
0022-1090;
1756-6916
Origination:
Footnote:
Description:
We investigate the role of country characteristics on the competition-governance relation. We find that competition is associated with higher ratings in corporate governance, but only in developing countries. Further, corporate governance is associated with greater firm value, but only in less competitive industries from developed countries. For developing countries, the evidence suggests that corporate governance is valuable mostly in competitive industries. Additional tests show that corporate governance increases labor productivity and cost efficiency, mostly in less competitive industries in both developed and developing countries. Furthermore, in developing countries, corporate governance increases investment in capital, but primarily in competitive industries.