Working Paper | HBS Working Paper Series | 2013

Which Does More to Determine the Quality of Corporate Governance in Emerging Economies, Firms or Countries?

by Andrea Hugill and Jordan Siegel

Abstract

Scholars of corporate governance have debated the relative importance of country and firm characteristics in understanding corporate governance variation across emerging economies. Using panel data and a number of model specifications, we shed new light on this debate. We find that firm characteristics are as important as and often meaningfully more important than country characteristics in explaining governance ratings variance. These results suggest that, over recent years, firms in emerging economies had more capability to rise above home-country peer firms in corporate governance ratings than has been previously suggested.

Keywords: Quality; Corporate Governance; Developing Countries and Economies;

Citation:

Hugill, Andrea, and Jordan Siegel. "Which Does More to Determine the Quality of Corporate Governance in Emerging Economies, Firms or Countries?" Harvard Business School Working Paper, No. 13-055, December 2012. (Revised March 2013.)