Measuring Corporate Governance: Objectives and Solutions by Comparison

Posted: 18 Apr 2011

See all articles by Massimo Regalli

Massimo Regalli

University of Parma - Dipartimento di Economia

Federica Ielasi

University of Florence - Department of Economics and Management

Maria-Gaia Soana

University of Parma

Date Written: April 1, 2011

Abstract

Many indicators have been developed at international level to evaluate the quality of corporate governance. In this paper, the fundamental elements and limitations of existing indicators are discussed. Among these indicators, particular attention has been focused on the GIM Index, an index utilized by numerous economists in empirical analyses on U.S. firms.The paper emphasizes the difficulty of the GIM Index to reflect the type of governance that characterizes enterprises operating in continental European countries. In order to evaluate the quality of governance of European firms a specific model (SIR Index) is formulated taking into account the main variables useful in understanding the asymmetry existing between minority and majority shareholders.

Keywords: Corporate governance, Governance index , GIM Index , SIR Index

JEL Classification: G34, G38

Suggested Citation

Regalli, Massimo and Ielasi, Federica and Soana, Maria-Gaia, Measuring Corporate Governance: Objectives and Solutions by Comparison (April 1, 2011). Bancaria No. 03-2011, Available at SSRN: https://ssrn.com/abstract=1812927

Massimo Regalli (Contact Author)

University of Parma - Dipartimento di Economia ( email )

Via Kennedy 6
Parma, Parma 43100
Italy

Federica Ielasi

University of Florence - Department of Economics and Management ( email )

Via delle Pandette, 9
Firenze, Florence 50127
Italy

Maria-Gaia Soana

University of Parma ( email )

Via Kennedy 6
Parma, 43100
Italy

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