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.
|Título traducido de la contribución||Códigos de Gobierno en Colombia: ¿realidad o ficción?|
|Estado||Publicada - oct. 2010|
Nota bibliográficaBibliografía: páginas 99-100
- Corporate governance
- Governance codes
- Agency theory
- Accounting performance