TY - JOUR
T1 - Governance codes: facts or fictions? :
T2 - a study of governance codes in Colombia
AU - Benavides Franco, Julián
AU - Mongrut Montalván, Samuel Arturo
N1 - Bibliografía: páginas 99-100
PY - 2010/10
Y1 - 2010/10
N2 - This article studies the effects on accounting performance and financing decisions of Colombian firms after issuing a corporate governance code. We assemble a database of Colombian issuers and test the hypotheses of improved performance and higher leverage after issuing a code. The results show that the firms’ return on assets after the code introduction improves in excess of 1%; the effect is amplified by the code quality. Additionally, the firms leverage increased, in excess of 5%, when the code quality was factored into the analysis. These results suggest that controlling parties commitment to self restrain, by reducing their private benefits and/or the expropriation of non controlling parties, through the code introduction, is indeed an effective measure and that the financial markets agree, increasing the supply of funds to the firms.
AB - This article studies the effects on accounting performance and financing decisions of Colombian firms after issuing a corporate governance code. We assemble a database of Colombian issuers and test the hypotheses of improved performance and higher leverage after issuing a code. The results show that the firms’ return on assets after the code introduction improves in excess of 1%; the effect is amplified by the code quality. Additionally, the firms leverage increased, in excess of 5%, when the code quality was factored into the analysis. These results suggest that controlling parties commitment to self restrain, by reducing their private benefits and/or the expropriation of non controlling parties, through the code introduction, is indeed an effective measure and that the financial markets agree, increasing the supply of funds to the firms.
KW - Corporate governance
KW - Governance codes
KW - Agency theory
KW - Accounting performance
KW - Leverage
M3 - Artículo de revista
SN - 0123-5923
VL - 26
SP - 85
EP - 102
JO - Estudios Gerenciales
JF - Estudios Gerenciales
IS - 117
ER -