Product Market Competition and Shareholder Rights: International Evidence

European Financial Management 18(4), 663–694, 2012

43 Pages Posted: 21 Feb 2010 Last revised: 10 May 2013

See all articles by Anzhela Knyazeva

Anzhela Knyazeva

Independent; New York University (NYU) - Leonard N. Stern School of Business

Diana Knyazeva

Independent

Date Written: 2012

Abstract

This paper examines the interaction between product market competition and international differences in shareholder rights in relation to firm performance and corporate policies. In contrast to existing literature, we provide evidence of complementarities between product market competition and country shareholder rights protections. The benefits of shareholder rights protections for firm performance are conditional on the presence of a competitive industry environment. We find that stronger shareholder rights protections are associated with better firm performance in competitive industries. However, this relation is not significant in concentrated industries. Consistent results are obtained from the analysis of key corporate policies.

Keywords: competition, shareholder rights, performance, law and finance, complementarity

JEL Classification: G30, G34, G38

Suggested Citation

Knyazeva, Anzhela and Knyazeva, Diana, Product Market Competition and Shareholder Rights: International Evidence (2012). European Financial Management 18(4), 663–694, 2012. Available at SSRN: https://ssrn.com/abstract=1555855

Anzhela Knyazeva (Contact Author)

Independent ( email )

No Address Available

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
Suite 9-160
New York, NY NY 10012
United States

Diana Knyazeva

Independent ( email )

No Address Available

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