Competition and Corporate Governance: Effects on Financial Position and Profitability
|Author:||Bc. Jan Kurzeja|
|Year:||2016 - summer|
|Leaders:|| doc. Jiří Novák M.Sc., Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||Using a novel approach towards competition and the Sarbanes Oxley Act (SOX)
as a shock to internal governance we examine the interaction between product
market competition and corporate governance mechanisms. Our results
provide a support for notions of substitution model of dividends and firms’
financial policies being shaped by competition environment. We find evidence
that companies facing higher competition threats experience a larger profitability
improvement, a notion that is inconsistent with a traditional substitution
relationship of governance and competition.