Corpus ID: 17991279

Governance , Stock Returns , and Market Efficiency

@inproceedings{Johnson2005GovernanceS,
  title={Governance , Stock Returns , and Market Efficiency},
  author={S. Johnson and Ted Moorman and S. Sorescu},
  year={2005}
}
Recent studies find significant positive (negative) long-term abnormal returns over the 1990s for firms with good (poor) governance, which calls into question both market efficiency and the usefulness of a large number of extant governance studies that use stock prices or returns from that period. Using control-firm calendar-time regressions, we find long-term abnormal returns that are statistically insignificant and near zero in magnitude for portfolios sorted on governance. The result from… CONTINUE READING
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