Corporate Governance and Firm Survival

59 Pages Posted: 15 Feb 2006 Last revised: 15 Jul 2017

See all articles by M. Sinan Goktan

M. Sinan Goktan

California State University, East Bay

Robert L. Kieschnick

University of Texas at Dallas

Rabih Moussawi

Villanova University - Department of Finance; University of Pennsylvania - The Wharton School

Multiple version iconThere are 2 versions of this paper

Date Written: July 10, 2017

Abstract

We explore how various aspects of corporate governance influence the likelihood of a public corporation surviving as a separate public entity, after addressing potential endogeneity that arises from the competing corporate exit outcomes: acquisitions, going private transactions, and bankruptcies. We find that some corporate governance features are more important determinants of the form of a firm’s exit than many economic factors that have figured prominently in prior research. We also find evidence that outsider-dominated boards and lower restrictions on internal governance play major roles in the way firms exit public markets, particularly when a firm’s industry suffers a negative shock.

Keywords: Corporate governance, acquisitions, going private, bankruptcy, corporate restructuring

JEL Classification: M40, M48, G33, G34

Suggested Citation

Goktan, Sinan and Kieschnick, Robert L. and Moussawi, Rabih, Corporate Governance and Firm Survival (July 10, 2017). Available at SSRN: https://ssrn.com/abstract=881608 or http://dx.doi.org/10.2139/ssrn.881608

Sinan Goktan

California State University, East Bay ( email )

25800 Carlos Bee Blvd
Hayward, CA 94542
United States
510-885-3797 (Phone)
510-885-7175 (Fax)

Robert L. Kieschnick (Contact Author)

University of Texas at Dallas ( email )

800 W. Campbell Rd, SM31
Richardson, TX 75080
United States
972-883-6273 (Phone)

HOME PAGE: http://www.utdallas.edu/~rkiesch/

Rabih Moussawi

Villanova University - Department of Finance ( email )

800 E Lancaster Ave
Bartley Hall, 2051
Villanova, PA 19085
United States

HOME PAGE: http://www.homepage.villanova.edu/rabih.moussawi

University of Pennsylvania - The Wharton School ( email )

United States

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