The Role of Self-Regulation in Corporate Governance: Evidence and Implications from the Netherlands

49 Pages Posted: 14 Feb 2001

See all articles by Abe de Jong

Abe de Jong

Rotterdam School of Management, Erasmus University; Monash University

Douglas V. DeJong

University of Iowa - Tippie College of Business

Gerard Mertens

Erasmus University Rotterdam (EUR) - Department of Financial Management

Charles E. Wasley

Simon School, University of Rochester

Date Written: December 2001

Abstract

This paper assesses the effectiveness of The Netherlands' private sector self-regulation initiative ("The Peters Committee") to improve corporate governance. We compare corporate governance characteristics and examine the relation between firm value and these characteristics before and after the private sector initiative. We find the private sector initiative had no substantive effect on corporate governance characteristics or their relationship with firm value. Based on event study results, we document the market's skepticism about the ultimate success of self-regulation of corporate governance practices in The Netherlands. An exception to this overall conclusion is the market for new listings. Our results on the outcome of The Netherlands self-regulation initiative suggests little can be expected from initiatives that rely on monitoring without enforcement (e.g., the similar or weaker initiatives in other European Union countries).

Keywords: International economics, financial economics, law and economics, corporate governance

JEL Classification: G3, L51

Suggested Citation

de Jong, Abe and DeJong, Douglas V. and Mertens, Gerard and Wasley, Charles E., The Role of Self-Regulation in Corporate Governance: Evidence and Implications from the Netherlands (December 2001). Simon School of Business Working Paper No. FR 00-20; ERIM Report Series Reference No. ERS-2001-87-F&A. Available at SSRN: https://ssrn.com/abstract=246952

Abe De Jong

Rotterdam School of Management, Erasmus University ( email )

P.O. Box 1738
Room T08-25
Rotterdam, 3000 DR
Netherlands
+31 10 408 1022 (Phone)

HOME PAGE: http://https://www.rsm.nl/people/abe-de-jong/

Monash University ( email )

23 Innovation Walk
Wellington Road
Clayton, Victoria 3800
Australia

Douglas V. DeJong (Contact Author)

University of Iowa - Tippie College of Business ( email )

108 Pappajohn Business Building
Iowa City, IA 52242-1000
United States
319-335-0919 (Phone)

Gerard Mertens

Erasmus University Rotterdam (EUR) - Department of Financial Management ( email )

P.O. Box 1738
Room T09-53
3000 DR Rotterdam
Netherlands
+31 10 408 2556 (Phone)
+31 10 408 9017 (Fax)

Charles E. Wasley

Simon School, University of Rochester ( email )

Rochester, NY 14627
United States
585-275-3362 (Phone)
585-442-6323 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
1,662
Abstract Views
6,976
rank
9,944
PlumX Metrics