Corporate Governance and International Trade
40 Pages Posted: 15 Mar 2012 Last revised: 3 Oct 2015
Date Written: February 21, 2015
We investigate how corporate governance affects the ability of firms to compete in international markets. Our empirical analysis draws on a variety of methods, including instrumental variable regressions, natural experiments and event studies. We find that firms subject to worse corporate governance are hurt more by the increase in foreign competition, especially so if they are less productive, located closer to foreign competitors, and face higher financial constraints.
Keywords: Corporate governance, free trade agreement, competition, performance
JEL Classification: G34, L10, M10, F14
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