Aggarwal, Reena; Erel, Isil; Stulz, René; Williamson, Rohan - In: Review of Financial Studies 23 (2010) 3, pp. 3131-3169
We construct a firm-level governance index that increases with minority shareholder protection. Compared with U.S. matching firms, only 12.68% of foreign firms have a higher index. The value of foreign firms falls as their index decreases relative to the index of matching U.S. firms. Our results...
