Gugler, Klaus, Mueller, Dennis C., Yurtoglu, B. Burcin. 2004. Corporate Governance and the Returns on Investment. Journal of Law and Economics XLVII 589-633.

RIS

@ARTICLE{Gugler2004,
title = {Corporate Governance and the Returns on Investment},
author = {Klaus Gugler and Dennis C. Mueller and B. Burcin Yurtoglu},
year = {2004},
volume = {XLVII},
language = {EN},
pages = {589-633},
journal = {Journal of Law & Economics},
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.},
}