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    Investability, corporate governance and firm value


    O'Connor, Thomas G. (2012) Investability, corporate governance and firm value. Research in International Business and Finance, 26 (1). pp. 120-136. ISSN 0275-5319

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    Abstract

    In this paper, I show that “investable premia” are greatest for transparent, well-governed firms. I find that single-class share investable firms and better-governed firms reap the largest valuation gains from becoming investable. Dual-class share firms do gain from becoming investable, but their gains are much lower than that of single-class share firms. These findings suggest that the failure on the part of firms to remedy agency conflicts prior to becoming investable only serves to greatly reduce, or even nullify their “investable premia”.

    Item Type: Article
    Keywords: Investability; Corporate governance; Tobin’s q;
    Academic Unit: Faculty of Social Sciences > Economics, Finance and Accounting
    Item ID: 8837
    Identification Number: https://doi.org/10.1016/j.ribaf.2011.09.001
    Depositing User: Thomas G. O'Connor
    Date Deposited: 20 Sep 2017 09:46
    Journal or Publication Title: Research in International Business and Finance
    Publisher: Elsevier
    Refereed: Yes
    URI:

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