Finance and Financial Management Commons^™

Corporate Governance Ratings In Emerging Markets: Implications For Market Valuation, Internal Firm-Performance, Dividend Payouts And Policy, Edward Baker, Ben Godridge, Aron Gottesman, Matthew Morey

CRIF Seminar series

This paper utilizes a new data set from AllianceBernstein that, unlike other corporate governance data, has country-level and monthly-updated firm-level governance ratings for 22 emerging markets countries for almost a five year period. With these data we examine the relationship of firm-level and country-level corporate governance on firm valuation, dividend payout, internal firm performance and other issues. We find a number of interesting results that have implications for corporations, investors and policymakers. First, we find there is a positive and significant relation between firm-level and country-level corporate governance ratings and market valuation. Second, we find this relation between governance and …