o Time : June 22, Friday 12:00 ~ 2:00 p.m.

o Venue : 9705(The 7th floor seminar room)

Who Cares about Control-Ownership Disparities in Emerging Markets? (coauthored with Woochan Kim and Shang-jin Wei)

Abstract

Are international portfolio investors averse to holding those emerging market stocks with a large disparity between a dominant shareholder’s control rights and ownership? As importantly, does the attitude toward the disparity depend on the quality of corporate governance of the investors’ home country? Was the Asian financial crisis a wake-up call inducing international investors to attach more weight to the corporate governance problem in emerging markets? This paper studies these questions, and finds that the answers are affirmative to all three questions but with some interesting nuances.