Convergence in corporate governance: a probit analysis
by Pedro Verga Matos; Nicoletta Rosati; Horácio C. Faustino
International Journal of Economics and Business Research (IJEBR), Vol. 12, No. 3, 2016

Abstract: In this paper the use of ratings as a measure of the quality of corporate governance of firms is explored to investigate the convergence of governance models. To study the evolution of such models in Europe, the proposed approach considers institutional-specific effects to analyse the determinants of the probability of a firm improving its rating, as well as the probabilities of transitioning between different levels of ratings. The methodology is based on binary and ordered choice probit models, and is illustrated using the official Deminor's governance ratings for a sample of 198 European companies belonging to the FTSE Eurofirst 300 index, in 2000 and 2003. Results suggest that there is a tendency for convergence, despite country-specific characteristics, and that the probability of increasing ratings is higher for the Anglo-Saxon model.

Online publication date: Mon, 14-Nov-2016

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economics and Business Research (IJEBR):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com