We study an agency problem in private universities — the conflict between controlling families and other stakeholders. We investigate whether universities over which controlling families have disproportionately significant power relative to the amount of funds they contribute, that is,...

This paper analyses how the quality of the corporate governance system impacts on the market value of the financial institutions listed on the Italian Stock Exchange. Implementing a good corporate governance is costly, therefore verifying whether the investment is worth its cost is a relevant...

The dominance of foreign capital in banking sector in the CEE countries created vulnerabilities that have been a contributing cause of recent financial crisis in the region. The question is whether the corporate governance structure of banks seemed to constrain or rather stimulate the potential...

The major function of corporate governance is to increase shareholder’s wealth. Observing the principle “comply or explain” by the financial companies has led to imbalance between shareholder’s wealth and the interests of society. Good practices in corporate governance of financial...

This paper endeavors to explore the roles that institutional investors play in acquisition decision of Chinese Public Listed Companies (PLCs). Acquisition decision is assumed as a cost-benefit analysis process of shareholders as strategic alliances. Using micro data in the Chinese stock market...

The paper reviews and assesses our understanding of the notion of “market discipline†in corporate governance. It questions the wholesale appeal to this notion in policy discussion, which fails to provide an account of the underlying mechanisms in terms of theory and empirical...

In this paper, we construct a Governance Index for a sample of Greek companies quoted on the Athens Stock Exchange. We then classify firms, using each firm governance index, into three governance portfolios. Furthermore, the Fama and French model, extended to include a momentum variable, is...

The process of improving Corporate Governance in emerging markets touches on a number of different aspects of the market organization. One essential area is the regulation, scope, timing and of procedure for mandatory disclosure of information. Disclosure is very important for investors, since...

This paper analyzes the effects of political presence in the boards of directors of cooperative banks. We refer our analysis to all politicians (almost 160.000) belonging to a political body in Italy. Overall, our dataset contains 1.858 board members referring to 127 cooperative banks. Results...

This paper examines the possibility of reducing executive compensation following the German VorstAG. To examine the potential economic impact of the reduction, a tournament model is introduced. The model shows some implications on the decisions of the Executive Board and Supervisory Board.