Samanta, N. (2019) Transplantation of Anglo-American corporate governance and its impact on financial market growth : a comparative analysis of nineteen developing countries 1995-2014. Corporate Governance, 19 (5). pp. 884-922. ISSN 1472-0701
Abstract
Purpose Since the late 1990s, developing countries have been encouraged by international financial organisations to adopt a shareholder primacy corporate governance model. It was anticipated that in an increasingly globalised financial market, countries which introduced corporate governance practices that favour investors would gain a comparative advantage and attract more capital leading to financial market growth. This paper aims to empirically test this hypothesis.
Design/methodology/approach The present research paper quantitatively investigates whether adopting shareholder primacy corporate governance norms has had any impact on the growth of the financial market, focusing on nineteen developing countries between 1995 and 2014. Time series indices are prepared for corporate governance regulations, financial market development along with three control indices. Then a lagged multilevel regression between these indices is used to investigate the strength of causality between the adoption of pro-shareholder corporate governance and the growth of the financial market.
Findings The research paper finds that shifting towards a shareholder primacy model in corporate governance has a very small effect on growth of financial market in developing countries. Overall the financial, economic and technological controls have much more impact on the growth of financial markets.
Originality/value This paper conclusively ends the discussion as to whether change in corporate governance has any impact on financial market growth of a country. The papers uses Bayesian econometric model. The paper thus signals the end of LLSV led question as to whether law can affect finance.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2019 Emerald. This is an author-produced version of a paper subsequently published in Corporate Governance. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Bayesian statistics; Multi-level regression; Quantitative corporate governance; Graded response model; Leximetrics |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > School of Law (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 21 Feb 2019 11:54 |
Last Modified: | 18 Nov 2021 09:08 |
Status: | Published |
Publisher: | Emerald |
Refereed: | Yes |
Identification Number: | 10.1108/CG-07-2018-0250 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:142493 |
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