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Determinants of Corporate Governance in the Italian Financial Market
Author(s) -
Barucci Emilio,
Falini Jury
Publication year - 2005
Publication title -
economic notes
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.274
H-Index - 19
eISSN - 1468-0300
pISSN - 0391-5026
DOI - 10.1111/j.0391-5026.2005.00155.x
Subject(s) - corporate governance , shareholder , business , stock exchange , accounting , convergence (economics) , balance sheet , stock market , institutional investor , balance (ability) , financial system , finance , economics , medicine , paleontology , horse , physical medicine and rehabilitation , biology , economic growth
We evaluate the determinants of corporate governance of companies listed at the Italian Stock Exchange. We consider ownership structure, balance sheet data, company performance and some qualitative features as determinants. We evaluate the convergence of Italian companies’ governance towards a system with effective governance mechanisms. Our analysis shows definitely that companies with a large shareholder and/or minority blockholders controlling a large stake and companies belonging to a pyramidal group or controlled by a shareholders’ coalition are characterized by a poor governance/shareholders’ protection standard. Institutional investors play a positive role .