• DOI:10.1016/J.JFINECO.2009.10.008
Corpus ID: 34793648

Does Corporate Governance Matter in Competitive Industries?

@article{Giroud2007DoesCG,
  title={Does Corporate Governance Matter in Competitive Industries?},
  author={Xavier Giroud and H. Mueller},
  journal={NBER Working Paper Series},
  year={2007}
}

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

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