Learning and the Disappearing Association Between Governance and Returns

@article{Bebchuk2010LearningAT,
  title={Learning and the Disappearing Association Between Governance and Returns},
  author={L. Bebchuk and A. Cohen and C. C. Wang},
  journal={Corporate Governance & Finance eJournal},
  year={2010}
}
  • L. Bebchuk, A. Cohen, C. C. Wang
  • Published 2010
  • Economics, Business
  • Corporate Governance & Finance eJournal
  • In an important and influential work, Gompers, Ishii, and Metrick (2003) show that a trading strategy based on an index of 24 governance provisions (G-Index) would have earned abnormal returns during the 1991-1999 period, and this intriguing finding has attracted much attention ever since it was reported. We show that the G-Index (as well as the E-Index based on a subset of the six provisions that matter the most) was no longer associated with abnormal returns during the period of 2000-2008, or… CONTINUE READING
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