Competition and Corporate Governance: Effects on Financial Position and Profitability
| Author: | Bc. Jan Kurzeja |
|---|---|
| Year: | 2016 - summer |
| Leaders: | Jiří Novák M.Sc., Ph.D., Deloitte Corporate Chair |
| Consultants: | |
| Work type: | Bachelors |
| Language: | English |
| Pages: | 48 |
| Awards and prizes: | |
| Link: | https://is.cuni.cz/webapps/zzp/detail/151332/ |
| 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. |
