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Economic models routinely assume firms maximize shareholder wealth; however common law legal systems only require that officers and directors pursue the interests of the corporation, leaving this ill-defined. Economic arguments for shareholder wealth maximization derived from shareholders'...
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This paper examines how the external information environment in which foreign subsidiaries operate affects the investment decisions of multinational corporations (MNCs). We hypothesize and find that the investment decisions of foreign subsidiaries in country-industries with more transparent...
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Pragmatic and effective research on corporate governance often turns critically on appreciating the legal institutions … surrounding corporate entities—yet such nuances are often unfamiliar or poorly specified to economists and other social scientists … without legal training. This chapter organizes and discusses key legal concepts of corporate governance, including statutes …
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to the study of corporate governance. Two types of modeling, hidden-information agency and informal (relational …
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