Title :
Compliance and Company Value: How Markets React to Reported Lapses in Corporate Governance
Author :
McDonough, Amy ; Sackmann, Stefan
Author_Institution :
Inst. of Comput. Sci. & Social Studies, Univ. of Freiburg, Freiburg, Germany
Abstract :
This study examines the impact of reported lapses in corporate governance, using event study analysis to explore the announcement effect of public reprimand letters issued for violations of corporate governance regulations. No evidence is found that the stock of companies receiving such a letter are subject to negative abnormal returns, thus it appears that investors do not consider the announcement to contain new relevant information for their assessment of company value.
Keywords :
organisational aspects; company value; corporate governance; event study analysis; negative abnormal returns; Audit Committee; Automatic control; Automation; Business; Companies; Computer science; Control systems; IEEE news; Investments; National security; Compliance; Corporate Governance; Event Study;
Conference_Titel :
Commerce and Enterprise Computing, 2009. CEC '09. IEEE Conference on
Conference_Location :
Vienna
Print_ISBN :
978-0-7695-3755-9
DOI :
10.1109/CEC.2009.60
