Corporate Governance and Lifecycles in Emerging Markets
Research in International Business and Finance (Forthcoming)
44 Pages Posted: 13 Apr 2020
Date Written: March 17, 2020
Whereas the corporate life cycle hypothesis says firms follow structured goals along their life cycle, others argue that corporate governance objectives vary independently of predetermined life cycle stages. This study examines the impact of the corporate life cycle on corporate governance in emerging markets, where firms can self-select into stricter rules by adopting an exchange listing level that fits the governance needs of the organization independently of life cycle requirements. We find the listing-level decision is a better predictor of corporate governance quality than corporate life cycle.
Keywords: Agency theory, Bovespa, corporate governance, corporate life cycle, emerging markets, Novo Mercado.
JEL Classification: G30, G32, G34.
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