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

See all articles by Changhong Li

Changhong Li

Shanxi University

Jialong Li

University of Manitoba - Asper School of Business

Mingzhi Liu

University of Manitoba - Asper School of Business

Yuan Wang

University of Manitoba - Asper School of Business

Zhenyu Wu

University of Manitoba

Date Written: December 1, 2016

Abstract

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

Suggested Citation

Li, Changhong and Li, Jialong and Liu, Mingzhi and Wang, Yuan and Wu, Zhenyu, Anti-Misconduct Policies, Corporate Governance and Capital Market Responses: International Evidence (December 1, 2016). Journal of International Financial Markets, Institutions, and Money, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2903818

Changhong Li

Shanxi University ( email )

No.92 Wucheng Rd
Taiyuan, Shanxi 030006
China

Jialong Li

University of Manitoba - Asper School of Business ( email )

181 Freedman Crescent
Winnipeg, Manitoba R3T 5V4
Canada

Mingzhi Liu (Contact Author)

University of Manitoba - Asper School of Business ( email )

460-181 Freedman Crescent
Winnipeg, Manitoba R3T 5V5
Canada
204-474-6847 (Phone)

HOME PAGE: http://umanitoba.ca/faculties/management/faculty_staff/academic_professors/mingzhi-liu.html

Yuan Wang

University of Manitoba - Asper School of Business ( email )

181 Freedman Crescent
Winnipeg, Manitoba R3T 5V4
Canada

Zhenyu Wu

University of Manitoba ( email )

181 Freedman Crescent
Winnipeg, Manitoba R3T 5V4
Canada

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