Corporate Governance and Performance of French Listed Companies
Bollaert, H. Daher, H. Deroo, A. Dupire, Marion
Bollaert, H.
Daher, H.
Deroo, A.
Dupire, Marion
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Publication Type
Journal article
Editor
Supervisor
Publication Year
2011
Journal
Bankers, Markets and Investors
Book
Publication Volume
Publication Issue
114
Publication Begin page
45
Publication End page
57
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Abstract
We analyze the link between corporate governance quality and performance in French listed firms. Using a Carhart four-factor analysis, we show that firms with higher levels of corporate governance quality underperform those with lower levels of quality by an average of 1.5% per year in 2005 – 2007. We capture corporate governance quality by means of index which reflects the specificities of corporate governance in France, in particular the existence of influential networks, whose interests may not necessarily coincide with those of shareholders, in the governance structures of firms. Our findings indicate that investors prefer firms with good connections, probably because they perceive that these firms may benefit from protection in times of need.
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Keywords
Accounting & Finance