We present a simple framework for dual-class stock shares, in which common shareholders receive public and private cash flows (i.e. dividends and any private benefit of holding voting rights) and preferred shareholders only receive public cash flows. We isolate those two cash flows in order to...

This paper investigates the effect of corporate governance reforms on the balance between ownership and control in a country characterized by poor investor protection. We use the example of Italy, where major reforms were passed in 1998 to protect minority shareholders from the risks of...

Previous studies (e.g., Sun and Tong, 2003; Wang et al., 2004) show that Share Issue Privatization (SIP) in China did not improve the profitability of State-owned Enterprises (SOEs). This is puzzling given that SIP improves firm profitability almost around the world and China's economic reform is...

Good corporate governance is essential for companies in reaching their full competitive potential in the global marketplace with unimpeded access to capital for their growth. During the recent years, Egypt has embraced a reform agenda that resulted in significant economic growth and substantial...

As the world’s leading international financial centre, London faces fascinating opportunities and significant challenges in coming years as a result of Brexit, increased international competition from other global financial centres, and the changing face of finance itself. The City should...

Animosity towards the business of finance is ancient and persistent. As finance creates intangible value, its contribution is invisible to many observers, but the proposed remedy – increased statutory regulation – may heighten, rather than mitigate the exposure of taxpayers and households to...

We examine the wealth effects of three regulatory changes designed to improve minority-shareholder protection in the Chinese stock markets. Using the value of a firm's related-party transactions as an inverse proxy for the quality of corporate governance, we find that firms with weaker...

This paper investigates Securities and Exchange Commission (SEC) deregistrations by foreign firms from the time the Sarbanes-Oxley Act (SOX) was passed in 2002 through 2008. We test two theories, the bonding theory and the loss of competitiveness theory, to understand why foreign firms leave...