Legal Protection, Corporate Governance and Information Asymmetry in Emerging Financial Markets

2002 ◽  
Author(s):  
Ferdinand A. A. Gul ◽  
Han Qiu
Keyword(s):  
Corporate Governance ◽  
Financial Markets ◽  
Information Asymmetry ◽  
Legal Protection

scholarly journals Discount, transparency and announcements effects of equity rights offerings: international evidence

2021 ◽  
Author(s):  
Nils-Christian Bobenhausen ◽  
Astrid Juliane Salzmann
Keyword(s):  
Financial Markets ◽  
Information Asymmetry ◽  
Capital Market ◽  
Announcement Effect ◽  
Announcement Effects ◽  
Market Transparency ◽  
International Evidence ◽  
Negative Effect ◽  
Rights Offering ◽  
High Information

AbstractEquity rights offerings and their respective announcement effects have been studied extensively in the literature. Our study expands upon these studies and focuses on those announcement effects and the relation between the discount of an equity rights offering and the announcement effect. Previous theoretical and empirical analyses show that firms can signal their quality via the discount in an equity rights offering and demonstrate a negative relation between the discount and the announcement effect. We argue that this link is only relevant in environments where signalling is possible and necessary. These are financial markets with a particularly low level of capital market transparency, i.e. high information asymmetry. We calculate announcement effects for an international sample of equity rights offerings and show that the negative effect of the discount on announcement effects can only be observed in environments with a low capital market transparency. Hence, our study estimates announcement effects across several different countries and is thus among the first to analyse signalling considerations for equity rights offerings in different transparency environments.

scholarly journals Correlations Between Corporate Governance Practices And Financial Performances In Indian Banks

2019 ◽  
Vol 8 (5C) ◽  
pp. 1485-1496
Keyword(s):  
Corporate Governance ◽  
Financial Markets ◽  
Financial Ratios ◽  
Share Prices ◽  
Corporate Scandals ◽  
Earnings Per Share ◽  
Governance Practices ◽  
Computer Services ◽  
Indian Banks ◽  
Governance Disclosure

In the last era, Corporate Governance has advanced and developed significantly. Integration and globilisation of the capital markets and financial markets are the important factors for the rapid developments in this arena. It has also made way to the development of more number of corporate scandals (such as corporate accounting scandal at Satyam computer services) or fraud loans by Banks (Punjab National Banks).The study based on correlation, analyses the link between corporate governance disclosure practices and the financial ratios, which in turn leads to a successful governance paradigm accountability. It also aims to study about the financial ratios, which are within the RBI trigger level and find out whether there is any correlation between the movements of share prices and earnings per share of the banks during the study period.

Corporate Governance and Accountability in the Age of Multilevel Governance in Turkey

2019 ◽  
pp. 117-139
Author(s):  
Gülşah Atağan
Keyword(s):  
Corporate Governance ◽  
Financial Markets ◽  
Capital Markets ◽  
Capital Market ◽  
Multilevel Governance ◽  
Governance Environment ◽  
Commercial Code ◽  
Governance Practices ◽  
Turkish Commercial Code ◽  
Legal Infrastructure

Corporate governance and accountability are getting more and more important both for world and Turkish economies thanks to increasing competitiveness conditions among companies. Applications of corporate governance principles can show differences from country to country. In Turkey, The Capital Markets Board issued corporate governance principles in 2003 to improve the corporate governance environment and integrate the Turkish capital market with global financial markets. The board has also adopted these principles in 2005 and made them final. The new Turkish Commercial Code is based on corporate governance principles. The new Turkish Commercial Code constitutes the legal infrastructure for corporate governance practices.

BoD Structure and Corporate Governance Models

2021 ◽  
pp. 281-292
Author(s):  
Mahboob Ullah
Keyword(s):  
Corporate Governance ◽  
Financial Markets ◽  
Financial Crises ◽  
Growth And Development ◽  
Good Governance ◽  
Corporate Boards ◽  
Corporate Structure ◽  
Corporate Body ◽  
Technology Advancement ◽  
Governance Models

Corporate governance, the soul of every corporate body, is indispensable for the survival, growth, and development of any kind of organization. It has significant impact and influence in attaining the confidence of stakeholder. Good governance leads to instill the confidence of stakeholder. The significance of corporate governance has increased globally in past decades due to financial crises, technology advancement, liberalizations, emergence of financial markets, and liberalization of trade and capital mobilization. Corporate boards, academicians, legislators, and in all businesses, corporate governance are believed to be a mainstream concern in corporate structure.

Sind Finanzmärkte in “Common-law-Ländern” besser entwickelt als in “Civil-law-Ländern”?

2007 ◽  
Vol 56 (1) ◽  
Author(s):  
Uwe Vollmer
Keyword(s):  
Corporate Governance ◽  
Economic Development ◽  
Financial Markets ◽  
Interest Groups ◽  
Financial Development ◽  
Common Law ◽  
Civil Law ◽  
Institutional Development ◽  
Law And Finance ◽  
Geography Of Religion

AbstractThough the idea that formal institutions of corporate governance matter for economic development is widely accepted, it is still a matter of debate why different systems of corporate governance are dominant in different countries. While the “law-and-finance-view” asserts that the country′s affiliation to a certain legal family matters, other authors instead either emphasize the importance of geography, of religion and culture or of the dominance of interest groups for the institutional development of financial markets. This article surveys different views about the causes of financial development and presents empirical evidence on the question whether financial markets are really better developed in “common-lawcountries” than in “civil-law-countries”.

A third dimension to understanding voluntary disclosures

2013 ◽  
Vol 34 (4) ◽  
pp. 48-54
Author(s):  
John Ben Prince ◽  
Neeraj Dwivedi
Keyword(s):  
Corporate Governance ◽  
Information Asymmetry ◽  
Agency Theory ◽  
Design Methodology ◽  
Voluntary Disclosures ◽  
Content Type ◽  
Strategic Actions ◽  
Third Dimension ◽  
Key Aspects

PurposeThe purpose of this paper is to establish sufficient potential for a novel perspective that could enhance understanding of the rationale behind voluntary disclosures. In this paper, the authors seek to provide an integrated view from different disciplines that points to a new dimension. This dimension is expected to promote a better understanding of voluntary disclosures in corporate governance.Design/methodology/approachThe authors use the conceptual underpinnings of agency theory and integrate several perspectives from different disciplines. Through the support of simple matrices and a conceptual figure, an interesting finding is proposed that could help provide a new way of looking at voluntary disclosures.FindingsThe established view holds that due to information asymmetry between the shareholders and the management, voluntary disclosures are more meaningful for the shareholders of the firm. The authors, however, suggest that since information asymmetry is already embedded in several roles and strategic actions of the board, it leads to the development of a third dimension in understanding voluntary disclosures.Originality/valueInformation asymmetry has been well understood as one of the key aspects of the agency theory. The authors' strive to apply this phenomenon while looking at the roles of the board and the strategic actions that result therein. The result is an enhanced understanding of the motivations behind voluntary disclosures.

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