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Evolution of Corporate Governance During the Recent Financial Crises

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Listed:
  • Hanene Ezzine
  • Bernard Olivero

Abstract

A domino effect can accelerate the spread of financial crises. Some firms, however, show better resistance than others thereby limiting the spread. Effective governance mechanisms enhance the ability of firms to absorb a stock market crisis. In a sample of Société des Bourses Françaises (SBF) 120 firms, significant changes in corporate governance scores are observed during the financial crises of 2006- 2008. We find that most French firms show a fairly satisfactory level of compliance with OECD governance principles. The results also suggest that stronger corporate governance practices should improve the visibility of the firm by the market.

Suggested Citation

  • Hanene Ezzine & Bernard Olivero, 2013. "Evolution of Corporate Governance During the Recent Financial Crises," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 7(1), pages 85-100.
    • Handle: RePEc:ibf:ijbfre:v:7:y:2013:i:1:p:85-100
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    References listed on IDEAS

    as
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    4. John E. Core & Wayne R. Guay & Tjomme O. Rusticus, 2006. "Does Weak Governance Cause Weak Stock Returns? An Examination of Firm Operating Performance and Investors' Expectations," Journal of Finance, American Finance Association, vol. 61(2), pages 655-687, April.
    5. Johnson, Simon & Boone, Peter & Breach, Alasdair & Friedman, Eric, 2000. "Corporate governance in the Asian financial crisis," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 141-186.
    6. Bernard Olivero & Hanene Ezzine & Ridha Shabou, 2010. "Crisis Transmission and Governance: Evidence from East Asian Countries," Post-Print hal-00583523, HAL.
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    8. Gérard Charreaux & Philippe Desbrières, 1998. "Gouvernance des entreprises:valeur partenariale contre valeur actionnariale," Revue Finance Contrôle Stratégie, revues.org, vol. 1(2), pages 57-88, June.
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    Cited by:

    1. Hanene Ezzine, 2018. "Corporate governance and social norms during financial crisis: evidence from France and Saudi Arabia," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(3), pages 707-748, September.
    2. Ichiro Iwasaki, 2015. "Global Financial Crisis, Ownership Change, and Corporate Governance Evolution Firm-Level Evidence from Russia," KIER Working Papers 925, Kyoto University, Institute of Economic Research.
    3. Iwasaki, Ichiro & 岩﨑, 一郎, 2016. "The Evolution of Corporate Governance in the Global Financial Crisis : The Case of Russian Industrial Firms," CEI Working Paper Series 2016-7, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.

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    More about this item

    Keywords

    Governance; Corporate Governance; Financial Crises;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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