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Corporate & Securities Law

: BusinessAssociationsBlog.com

Governance and Performance: The Direction of the Causation Arrow

By Stephen Bainbridge

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Here is a provocative paper that argues the causation arrow runs in the opposite direction of what one might assume: A common view, seemingly supported by empirical findings, is that better corporate governance leads to better corporate performance. But, if true, why do firms then leave money on the table by having poor governance? This paper builds a model that explains the empirical findings,...

[continued on site]

Full post as published by BusinessAssociationsBlog.com on February 11, 2008 (boomark / email).

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