We study the relationship between diversification and firm performance in the context of the
decline in levels of diversification over time. We argue that the pressure to reduce …

Abstract Research Question/Issue Over the last decades, research on the relationship
between national institutions, governance mechanisms, and firm outcomes has been …

We survey two generations of research on corporate governance systems around the world,
concentrating on countries other than the US The first generation of international corporate …

This essay surveys the body of research that asks how the efficiency of corporate investment
is influenced by problems of asymmetric information and agency. I organize the material …

In a sample of 398 firms from Indonesia, Korea, Malaysia, the Philippines, and Thailand, firm-
level differences in variables related to corporate governance had a strong impact on firm …

Diversified business groups, consisting of legally independent firms operating across
diverse industries, are ubiquitous in emerging markets. Groups around the world share …

We develop a two-tiered agency model that shows how rent-seeking behavior on the part of
division managers can subvert the workings of an internal capital market. By rent-seeking …

This paper argues that the documented discount on diversified firms is not per se evidence
that diversification destroys value. Firms choose to diversify. We use three alternative …

During the 1997 Korean financial crisis, firms with higher ownership concentration by
unaffiliated foreign investors experienced a smaller reduction in their share value. Firms that …

Relationship-based systems ensure a return to the financier by granting her some form of
power over the firm being financed. The simplest form of power is when the financier has …