Anti-Misconduct Policies, Corporate Governance and Capital Market Responses: International Evidence
Journal of International Financial Markets, Institutions, and Money, Forthcoming
43 Pages Posted: 25 Jan 2017
Date Written: December 1, 2016
Using a sample of 5,486 observations from 25 countries between 2009 and 2013, we investigate the signaling effects of anti-misconduct policies on market valuation, and address the roles played by internal corporate governance mechanisms and external institutional environments. The results show that effective corporate governance mechanisms lead to higher-quality anti-misconduct policies. Furthermore, we find that although anti-misconduct policies alone do not affect market valuation in general, they do improve market valuation in countries with stronger legal and regulatory environments.
Keywords: Anti-misconduct Policies, Corporate Governance, Market Valuation
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