Corporate Governance Reforms in the EU: Do They Matter and How?

Author/Editor:

Iryna V. Ivaschenko ; Petya Koeva Brooks

Publication Date:

April 1, 2008

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper proposes a new approach to quantifying the effects of corporate governance reforms, by focusing on the dynamics of the voting premiums, a measure of the private benefits of control in a corporation. The results indicate that the reforms have been successful in reducing the voting premiums EU-wide. Moreover, more intense and broad reform efforts (such as introducing national reforms beyond and above the EU-wide initiatives) bring higher and longer lasting benefits. Our findings also suggest that the market for corporate control in Europe has become more integrated, as illustrated by the lower dispersion in voting premiums across countries and over time.

Series:

Working Paper No. 2008/091

Subject:

Auditing Capital markets Commodity markets Corporate governance Securities

English

Publication Date:

April 1, 2008

ISBN/ISSN:

9781451869521/1018-5941

Stock No:

WPIEA2008091

Pages:

29

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