When does Competition Mitigate Agency Problems?

• Main Author: TANG, Yuehua
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2005
• Subjects: Corporate governance; product market competition; industry homogeneity; anti-takeover laws; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/4570
• Institution: Singapore Management University

This paper examines empirically how the performance correlation of firms within an industry affects the degree to which product market competition mitigates agency problems. Using the passage of state anti-takeover laws as a source of identifying exogenous variation in corporate governance, I find t...