Does Competition Matter for Corporate Governance? The Role of Country Characteristics

Jean-Claude Cosset, Hyacinthe Y. Somé and Pascale Valery

Abstract: We investigate the empirical relation between competition and corporate governance and the effect of country characteristics on this relation. We find that competition is associated with strong corporate governance, but only in less developed countries. We next examine the impact of corporate governance on firm value given the level of competition. We find that competition and corporate governance appear to be complements in explaining firm value in developing countries, while in developed countries they are substitutes.

Keywords: Product market competition; Corporate governance; Economic and financial development; Investor protection (search for similar items in EconPapers)
JEL-codes: G30 L00 O16 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-bec, nep-cfn, nep-com and nep-cse
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Persistent link: https://EconPapers.repec.org/RePEc:lvl:lacicr:1238

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