Law, Finance, and the International Mobility of Corporate Governance
Journal of International Business Studies, Forthcoming
44 Pages Posted: 27 Jan 2017 Last revised: 12 Mar 2017
Date Written: December 20, 2016
We introduce the topic of this special issue on the “Role of Financial and Legal Institutions in International Governance”, with a particular emphasis on a notion of “international mobility of corporate governance”. Our discussion places the special issue at the intersection of law, finance, and international business, with a focus on the contexts of foreign investors and directors. Country-level legal and regulatory institutions facilitate foreign ownership, foreign directors, raising external financial capital, and international M&A activity. The interplay between the impact of foreign ownership and foreign directors on firm governance and performance depends on international differences in formal/regulatory institutions. In addition to legal conditions, informal institutions such as political connections also shape the economic value of foreign ownership and foreign directors. We highlight key papers in the literature, provide an overview of the new papers in this special issue, and offer suggestions for future research.
Keywords: Law and Finance, Corporate Governance, Mobility, Foreign Investors, Directors, Political Connections
JEL Classification: F20, F30, G30
Suggested Citation: Suggested Citation