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A cross-firm analysis of the impact of corporate governance on the East Asian financial crisis (2001)
| Citations: | 188 - 4 self |
BibTeX
@MISC{Mitton01across-firm,
author = {Todd Mitton and Sendhil Mullainathan and David Scharfstein and Jeremy Stein For and To Simeon Djankov and Kristin Forbes and Ken French and Kathy Kahle and Grant Mcqueen and Andrei Shleifer and Keith Vorkink and Marc Zenner},
title = {A cross-firm analysis of the impact of corporate governance on the East Asian financial crisis},
year = {2001}
}
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Abstract
In a sample of 398 firms from Indonesia, Korea, Malaysia, the Philippines, and Thailand, firm-level differences in variables related to corporate governance had a strong impact on firm performance during the East Asian financial crisis of 1997 to 1998. Significantly better stock price performance is associated with firms that had indicators of higher disclosure quality (ADRs and auditors from Big Six accounting firms), with firms that had higher outside ownership concentration, and with firms that were focused rather than diversified. The results suggest that individual firms have some power to preclude expropriation of minority shareholders if legal protection is inadequate. JEL classification: G15; G32; G34 Keywords: Financial crises; Corporate governance; Disclosure; Ownership structure; Diversification I am grateful to Simon Johnson, Sendhil Mullainathan, David Scharfstein, and Jeremy Stein for advice and encouragement, and to Simeon Djankov, Kristin Forbes, Ken French, Kathy Kahle, S.P. Kothari, Grant McQueen, Andrei Shleifer, Keith Vorkink, Marc Zenner, an anonymous referee, and seminar participants at Brigham Young University, MIT, Texas A&M University, the University of Illinois at Urbana-Champaign, and the University of Pittsburgh for helpful comments. I thank Simeon Djankov for making data available that is used in Panel C of Table 3. This paper is a revised version of a chapter of my MIT Ph.D. thesis. All errors are mine. E-mail address: todd.mitton@byu.edu 0304-405X/00/$-see front matter 2002 Elsevier Science S.A. All rights reserved 1 1.
Keyphrases
corporate governance east asian financial crisis cross-firm analysis simeon djankov e-mail address jel classification see front matter firm-level difference simon johnson minority shareholder g34 keywords david scharfstein brigham young university keith vorkink sendhil mullainathan texas university kristin forbes elsevier science s.a. right legal protection seminar participant andrei shleifer big six accounting firm grant mcqueen jeremy stein revised version anonymous referee s.p. kothari outside ownership concentration individual firm strong impact stock price performance mitton byu ken french helpful comment financial crisis firm performance disclosure quality kathy kahle ownership structure marc zenner mit ph
