Law, Finance, and the International Mobility of Corporate Governance

Journal of International Business Studies, Forthcoming

Robert H. Smith School Research Paper No. RHS 2905710

44 Pages Posted: 27 Jan 2017 Last revised: 15 Oct 2021

See all articles by Douglas J. Cumming

Douglas J. Cumming

Florida Atlantic University; Birmingham Business School; European Corporate Governance Institute (ECGI)

Igor Filatotchev

City University London - The Business School

April M. Knill

University of South Carolina - Darla Moore School of Business

David M. Reeb

National University of Singapore - Dept of Accounting

Lemma W. Senbet

University of Maryland - Robert H. Smith School of Business

Date Written: December 20, 2016

Abstract

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

Cumming, Douglas J. and Filatotchev, Igor and Knill, April M. and Reeb, David M. and Senbet, Lemma W., Law, Finance, and the International Mobility of Corporate Governance (December 20, 2016). Journal of International Business Studies, Forthcoming, Robert H. Smith School Research Paper No. RHS 2905710, Available at SSRN: https://ssrn.com/abstract=2905710

Douglas J. Cumming (Contact Author)

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

HOME PAGE: http://sites.google.com/view/douglascumming/bio?authuser=0

Birmingham Business School ( email )

Edgbaston Park Road
Birmingham, B15 2TY
United Kingdom

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

HOME PAGE: http://https://ecgi.global/users/douglas-cumming

Igor Filatotchev

City University London - The Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom

April M. Knill

University of South Carolina - Darla Moore School of Business ( email )

1014 Greene Street
University of South Carolina
Columbia, SC 29208
United States
18502949216 (Phone)

David M. Reeb

National University of Singapore - Dept of Accounting ( email )

Mochtar Riady Building
15 Kent Ridge Drive
Singapore, 119245
Singapore

HOME PAGE: http://www.davidreeb.net

Lemma W. Senbet

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742-1815
United States
301-405-2242 (Phone)
301-405-0359 (Fax)

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