Insight

Takes a village to raise a firm

Jiekun Huang says coordination between shareholders is equally important for firm value

Many management gurus have attributed credit for business success to open communication. Now, researcher Jiekun Huang says coordination between shareholders is equally important for an improvement in the value of a firm and its level of governance. The researcher found that firm value goes up with increased ease of shareholder coordination. Even under shocks from external events, such as mergers, if channels for shareholder communication were open, firms managed to retain their value.

 

Title: Shareholder Coordination, Corporate Governance, and Firm Value

Source: Social Science Research Network

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