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→Measures
Key: Measure - Build - Sources - Paper
Note: Each paper seems to use one of two indices, the GIM or E index (from BCF), as a measure of corporate governance. Most papers also exclude companies with dual-class shares because GIM did that originally.
*Corporate Governance (anti-takeover provision or ATP) Indices - Gompers et al 2003 (GIM) uses 24 IRRC antitakeover provisions & adds one point to index for each provision that enhances managerial power and is available 1990-2002 with sample size 11,736. Bebchuk et al 2009 (BCF) takes only 6 of those provisions for its entrenchment index (staggered boards, limits to shareholder bylaw amendments, limits to shareholder charter amendments, supermajority requirements for mergers, poison pills, and golden parachutes) and is available 1990-2002 with sample size 11,736 - SDC M&A Database, acquirer has financial info thru Compustat and CRSP Daily Stock Price & Returns File, acquirer is included in Investor Responsibility Research Center (IRRC) of antitakeover provisions - Masulis et al 2011
*Median director dollar value ownership - The dollar value of the stock ownership / voting power is calculated for all directors. We take the median director's holdings as the governance measure as this individual can be viewed as having the 'swing' vote in governance related matters. - Data from IRRC and TCL available 1998-2002 sample size 6,126 - Bhagat & Bolton 2008
*Median director percent value ownership - The percentage ownership of the firm's total voting power is calculated for all directors. We take the median director's ownership as the governance measure as this individual can be viewed as having the 'swing' vote in governance related matters. - IRRC and TCL available 1998-2002 sample size 6130 - Bhagat & Bolton 2008
*CEO chair duality - A dummy variable equal to 1 if the CEO is also the chairman of the board. - IRRC and TCL available 1998-2002 sample size 8,847 - Bhagat & Bolton 2008
=Papers=
