The Corporate Governance Program

Corporate governance and economic performance

The basic question in this project is whether a firm's corporate governance system (such as its ownership structure and board characteristics) matters for its economic performance.

The findings from this research are documented in five papers:

The first and the fifth paper start by describing existing theory and international empirical evidence on the governance-performance interaction. Using a wide set of alternative regression models, econometric techniques, and performance measures, we explore to what extent our sample firms' corporate governance characteristics are associated with the economic value created. The second paper is a short discussion of a strategy of active governance as opposed to active trading for mutual funds. The third paper analyzes how the ownership structure is reflected in price differences between share classes at the OSE. The fourth paper is a relatively long interview, and the fifth paper is a rewritten version of a paper which originates from the 2001 research report.
Here is what we find: