Gugler, Klaus, Mueller, Dennis C., Yurtoglu, B. Burcin. 2004. Corporate Governance and the Returns on Investment. Journal of Law and Economics XLVII 589-633.
BibTeX
Abstract
We analyze the impact of corporate governance institutions and ownership structures on company returns on investment by using a sample of more than 19,000 companies from 61 countries across the world. We show that the origin of a countries legal system proves to be the most important determinant of investment performance. Companies in countries with a legal system of English origin earn returns on investment that are at least as large as their costs of capital. Companies in all countries with civil-law systems earn on average returns on investment below their costs of capital. Furthermore, differences in investment performance that are related to a countries legal system dominate differences that are related to ownership structure. We also present considerable evidence that managerial entrenchment worsens a companies investment performance.
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Status of publication | Published |
---|---|
Affiliation | WU |
Type of publication | Journal article |
Journal | Journal of Law & Economics |
Citation Index | SSCI |
WU Journalrating 2009 | A |
WU-Journal-Rating new | FIN-A, STRAT-B, VW-B, WH-B |
Language | English |
Title | Corporate Governance and the Returns on Investment |
Volume | XLVII |
Year | 2004 |
Page from | 589 |
Page to | 633 |
Associations
- People
- Gugler, Klaus (Details)
- External
- Mueller, Dennis C. (Universität Wien, Austria)
- Yurtoglu, B. Burcin (Universität Wien, Austria)
- Organization
- Research Institute for Regulatory Economics FI (Details)
- Institute for Quantitative Economics IN (Details)