Corporate Governance and Investment: An International Research Network (CBR project)

Overview

Aims and objectives

Considerable concern has been expressed recently over slow growth, lagging productivity, and the loss of markets to foreign competition in Europe. One cause given is the quality of management decisions in particular with respect to investments in capital equipment, research and development, and mergers. This failing has been attributed to agency conflicts between owners and managers, which in turn are related to corporate governance structures. The project is examining these issues. The methodology has included comparative institutional analysis of corporate governance systems in Europe (building on work carried out previously under the executive pay and performance project), and the use of micro-econometric techniques to analyse the determinants of the tenure of top executives and executive pay levels. Work has continued on the influences on merger activity and its success.

Results and dissemination

In 2008 work by Andy Cosh and Alan Hughes examining the impact of Ajit Singh’s seminal book Takeovers, (published in 1971), was published. Cosh, Hughes and Guest also contributed a chapter on takeovers and governance to the Festschrift to honour Dennis Mueller. Paul Guest has in addition published a number of papers examining the determinants of board size and its consequence for firm value; and the impact of corporate acquisitions on executive pay. Finally, Hughes and Desyllas have published articles on the links between innovation and corporate acquisition of public and private businesses.

Principal investigators

Andy Cosh
Alan Hughes
Paul Guest

Research associates

Ajit Singh, Faculty of Economics
Panos Desyllas, Manchester Business School
Dennis Mueller, University of Vienna
Klaus Gugler, University of Vienna
Burcin Yurtoglu, University of Vienna
Hiroyuki Odagiri, University of Tokyo

Project status

Completed

Project dates

1999-2009

Funding

ESRC

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