Fulghieri, Paolo; Suominen, Matti - In: Journal of Financial and Quantitative Analysis 47 (2012) 06, pp. 1187-1214
We present a theory of the linkages between corporate governance, corporate finance, and the real sector of an economy. Using a structural model of industry equilibrium with endogenous entry, we show that poor corporate governance leads to low levels of competition, and to firms with high...