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Anti-misconduct policies, corporate governance and capital market responses: International evidence

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  • Li, Changhong
  • Li, Jialong
  • Liu, Mingzhi
  • Wang, Yuan
  • Wu, Zhenyu

Abstract

Using a sample of 5486 observations from 25 countries between 2009 and 2013, we investigate the signaling effects of anti-misconduct policies on market valuation, and address the roles played by internal corporate governance mechanisms and external institutional environments. The results show that effective corporate governance mechanisms lead to higher-quality anti-misconduct policies. Furthermore, we find that although anti-misconduct policies alone do not affect market valuation in general, they do improve market valuation in countries with stronger legal and regulatory environments.

Suggested Citation

  • Li, Changhong & Li, Jialong & Liu, Mingzhi & Wang, Yuan & Wu, Zhenyu, 2017. "Anti-misconduct policies, corporate governance and capital market responses: International evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 48(C), pages 47-60.
    • Handle: RePEc:eee:intfin:v:48:y:2017:i:c:p:47-60
    DOI: 10.1016/j.intfin.2016.12.002
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