Understanding the Endogeneity between Firm Value and Shareholder Rights PoorSatisfactoryGoodVery GoodExcellent Be the first. (0 ratings) Log in to rate this article. CFA Digest May 2006 | Vol. 36 | No. 2 | 2 pages Source: CFA InstituteJianxin (Daniel) ChiLuis Garcia-Feijoo, CFA (Reviewer) Read Abstract The author investigates whether firm value and shareholder rights affect each other or whether they are related spuriously through the influence of a third variable. A change in governance quality is positively correlated with the future change in firm value, but a change in firm value is not related to a future change in governance quality; thus it is unlikely that firm value affects governance quality. The author also finds that after controlling for unobservable firm heterogeneity and certain observable characteristics of firms, as governance quality increases (decreases), there is a subsequent increase (decrease) in firm value. View more information Topics Corporate Finance : Corporate Governance | Leadership, Management, and Communication Skills : Firm Management Credits · About the CE Program 0 CE (including 0 SER) Record credits Credits recorded Members, log in to record your credits. Manage CE Credits People who viewed this page also viewed: Credit Suisse Global Wealth Databook This Databook displays the detailed dataset backing the "Credit Suisse Global Wealth Report," the comprehensive study of world ... More Credit Suisse Global Wealth Report The "Credit Suisse Global Wealth Report" is a comprehensive study of world wealth that analyzes the world’s entire 200 trillion ... More Top Hedge Fund Investors: Stories, Strategies, and Advice This book chronicles top hedge fund investors that played key roles in the industry, including substantial information on manager sourcing, ... More Loading ...