Corporate Governance Reform: Influence on Shareholder Wealth

How to Cite

Corporate Governance Reform: Influence on Shareholder Wealth. (1999). Journal of Business Strategies, 16(1), 48-66.


Many corporations have adopted governance practices advocated by shareholder activists. To date, the net effect of such practices is largely unknown. Both practitioners and academics agree that additional research is required to determine whether governance practices have actually improved corporate performance. This paper attempts to resolve some of the uncertainties surrounding changes in governance practice. We consider four governance practices widely advocated by shareholder activists and test whether their net and individual effects have an impact on shareholder returns following layoff announcements.


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