Corporate governance reforms, societal trust and corporate financial policies

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)32_Refereed conference paper (no ISBN/ISSN)peer-review

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Detail(s)

Original languageEnglish
Publication statusAccepted/In press/Filed - 4 Aug 2021

Conference

Title2021 American Accounting Association Annual Meeting
Location
City
Period2 - 5 August 2021

Abstract

Using a sample of 88,273 firm-year observations across 35 countries, we document that the positive effect of corporate governance reforms on corporate financing and investment is decreasing with country-level trust. This finding is robust to an array of robustness tests and suggest that institutional enhancement (via strengthened firm-level governance practices) and societal trust are effective in alleviating the agency cost of capital accumulation and allocation. Our study highlights that corporate governance and trust are substitutes, which implies a condition under which government intervention is optimal and indicates that countries can offset the negative lack-of-trust effect on economic outcomes.

Bibliographic Note

Since this conference is yet to commence, the information for this record is subject to revision.

Citation Format(s)

Corporate governance reforms, societal trust and corporate financial policies. / DAK-ADZAKLO, Cephas Simon Peter; WONG, Man Kong.

2021. Paper presented at 2021 American Accounting Association Annual Meeting, .

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)32_Refereed conference paper (no ISBN/ISSN)peer-review