*Dipartimento di Matematica, Politecnico di Milano, Via Bonardi 9, 20133, Milano, Italy. E-mail: email@example.com
Determinants of Corporate Governance in the Italian Financial Market
Article first published online: 16 NOV 2005
Volume 34, Issue 3, pages 371–405, November 2005
How to Cite
Barucci, E. and Falini, J. (2005), Determinants of Corporate Governance in the Italian Financial Market. Economic Notes, 34: 371–405. doi: 10.1111/j.0391-5026.2005.00155.x
We thank Marcello Bianchi, Fabrizio Mattesini, Marcello Messori and participants at seminars held at Università della Svizzera Italiana, Perugia, Pisa, Roma Tor Vergata, Rostock, SOAS London and Verona for comments. We thank a referee for useful comments and insights to improve the quality of the presentation of the paper. The usual disclaimers apply.
- Issue published online: 16 NOV 2005
- Article first published online: 16 NOV 2005
We evaluate the determinants of corporate governance of companies listed at the Italian Stock Exchange. We consider ownership structure, balance sheet data, company performance and some qualitative features as determinants. We evaluate the convergence of Italian companies’ governance towards a system with effective governance mechanisms. Our analysis shows definitely that companies with a large shareholder and/or minority blockholders controlling a large stake and companies belonging to a pyramidal group or controlled by a shareholders’ coalition are characterized by a poor governance/shareholders’ protection standard. Institutional investors play a positive role.