Anti-misconduct policies, corporate governance and capital market responses: International evidence

Using a sample of 5486 observations from 25 countries between 2009 and 2013, we investigate the signaling effects of anti-misconduct policies on market valuation, and address the roles played by internal corporate governance mechanisms and external institutional environments. The results show that effective corporate governance mechanisms lead to higher-quality anti-misconduct policies. Furthermore, we find that although anti misconduct policies alone do not affect market valuation in general, they do improve market valuation in countries with stronger legal and regulatory environments. (C) 2016 Elsevier B.V. All rights reserved.