Omrane Guedhami

Do Multiple Large Shareholders Play a Corporate Governance Role? Evidence from East Asia

Abstract We examine the governance role of multiple large shareholder structures (MLSS) to determine their valuation effects in a sample of 1,252 publicly traded firms from nine East Asian economies. We find that the presence, number, and size of multiple large shareholders are associated with a significant valuation premium. Our results also show that the identity of MLSS influences corporate value and that the valuation effects of MLSS are more pronounced in firms with greater agency costs. Our results imply that MLSS play a valuable monitoring role in curbing the diversion of corporate resources. Copyright (c) 2009 The Southern Finance Association and the Southwestern Finance Association.

Privatization, corporate governance and economic environment: Firm-level evidence from Asia

Abstract We examine the postprivatization performance of newly privatized firms in Asia and document how the private ownership structure evolves over time. We show that privatization leads to an increase in profitability, efficiency, and output in former state-owned firms from Asia. However, these changes are generally less significant than those reported in other developing countries (DCs). We also find that higher improvements in performance are associated with certain aspects of (1) corporate governance and (2) the economic environment. Finally, we show that governments generally do not relinquish control and private ownership concentrates over time, but by far less than what we observe elsewhere in developing countries.

Privatisation in Developing Countries: Performance and Ownership Effects

Over the last twenty years, privatisation, defined as the transfer of public assets (firms) from the government to private investors, has been on the reform agenda of more than 120 developing countries. The switch of ownership induces major changes in the corporate governance of firms, and in their incentives to restructure and improve efficiency and performance. This article evaluates this experience, focusing on its impact on corporate performance and governance, identifying several issues yet to be resolved. Copyright (c) The Authors 2008. Journal compilation (c) 2008 Overseas Development Institute..

International Diversification and Corporate Social Responsibility

Using a large sample of 3,040 U.S. firms and 16,606 firm-year observations over the 1991-2010 period, we find strong evidence that firm internationalization is positively related to the firm’s corporate social responsibility (CSR) rating. This finding persists when we use alternative estimation methods, samples, and proxies for internationalization and when we address endogeneity concerns. Next, we find that firm characteristics such as size, profitability, growth opportunities, R&D, and advertising expenses condition the link between internationalization and CSR. We finally provide novel evidence that firms with extensive foreign subsidiaries in countries with well-functioning political and legal institutions have better CSR ratings.