The authors acknowledge the financial support of the William E. Simon Graduate School of Business Administration. The authors are grateful to the Editor (John A. Doukas), an anonymous referee, Kose John, and Charu Raheja for valuable comments and suggestions. All errors and omissions are our own. Correspondence: Anzhela Knyazeva.
Product Market Competition and Shareholder Rights: International Evidence
Article first published online: 23 SEP 2010
© 2010 Blackwell Publishing Ltd
European Financial Management
Volume 18, Issue 4, pages 663–694, September 2012
How to Cite
Knyazeva, A. and Knyazeva, D. (2012), Product Market Competition and Shareholder Rights: International Evidence. European Financial Management, 18: 663–694. doi: 10.1111/j.1468-036X.2010.00567.x
- Issue published online: 21 AUG 2012
- Article first published online: 23 SEP 2010
- shareholder rights;
- law and finance;
This paper examines the interaction between product market competition and international differences in shareholder rights in relation to firm performance and corporate policies. In contrast to existing literature, we provide evidence of complementarities between product market competition and country shareholder rights protections. The benefits of shareholder rights protections for firm performance are conditional on the presence of a competitive industry environment. We find that stronger shareholder rights protections are associated with better firm performance in competitive industries. However, this relation is not significant in concentrated industries. Consistent results are obtained from the analysis of key corporate policies.