Does Corporate Governance Matter in Competitive Industries?

  title={Does Corporate Governance Matter in Competitive Industries?},
  author={Xavier Giroud and H. Mueller},
  journal={NBER Working Paper Series},
  • Xavier Giroud, H. Mueller
  • Published 2007
  • Economics, Business
  • NBER Working Paper Series
  • By reducing the threat of a hostile takeover, business combination (BC) laws weaken corporate governance and increase the opportunity for managerial slack. Consistent with the notion that competition mitigates managerial slack, we find that while firms in non-competitive industries experience a significant drop in operating performance after the laws' passage, firms in competitive industries experience no significant effect. When we examine which agency problem competition mitigates, we find… CONTINUE READING
    720 Citations
    Corporate Governance and International Trade Shocks
    • 9
    • Highly Influenced
    • PDF
    Corporate Governance and Product Market Competition: Evidence from Import Tariff Reductions
    • Highly Influenced
    The Impact of Product Market Competition on Firms ’ Payout Policy
    • 19
    • Highly Influenced
    • PDF


    Corporate Governance, Product Market Competition, and Equity Prices
    • 592
    • PDF
    Takeover Defenses and Competition
    • 40
    Enjoying the Quiet Life? Corporate Governance and Managerial Preferences
    • 1,949
    • Highly Influential
    • PDF
    The Impact of Product Market Competition on Private Benefits of Control
    • 48
    • PDF
    Tender Offers and Leverage
    • 65
    • PDF