Dos investors react to corporate governance news?An empirical analysis

  1. Natalia Utrero-González 1
  2. Francisco J. Callado-Muñoz 1
  1. 1 Centro Universitario de la Defensa Zaragoza, España
Zeitschrift:
Business Research Quarterly

ISSN: 2340-9444,  2340-9436

Datum der Publikation: 2016

Ausgabe: 19

Nummer: 1

Seiten: 13-25

Art: Artikel

DOI: 10.1016/J.BRQ.2015.04.002 DIALNET GOOGLE SCHOLAR lock_openOpen Access editor

Andere Publikationen in: Business Research Quarterly

Ziele für nachhaltige Entwicklung

Zusammenfassung

This work adds to the debate on corporate governance regulations and its effects on performance and firm value. The paper empirically tests whether there is a significant price reaction to corporate governance announcements following the publication of the Aldama Code of Best practice (2003) in Spain. In particular, news announcements are classified according to the code principles to distinguish among different dimensions of corporate governance and have a better understanding of investors’ reaction. Results show first, that investors react to this kind of practices, second, that the sign of their reaction depends crucially on the nature and extension of the recommendation and finally that firms that disclose more do not enjoy higher market prices or return on the medium-long term.

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