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- Title
Product Market Competition and Corporate Governance Structure Change: Evidence from the Telecommunications Industry.
- Authors
Brookman, Jeffrey T.; Rennie, Craig G.; Sullivan, Michael J.
- Abstract
In this paper we investigate how product market competition and corporate governance structure are affected by technological, competitive, and regulatory shocks on telecommunications firms brought by the Telecommunications Act of 1996. We find that the effect varies across segments of the Telecommunications industry. Telecommunication equipment and service firms experience increased competition, but no relative strengthening in corporate governance. In contrast, entertainment firms do not experience a change in competition, but adopt stronger governance structures that better control owner-manager agency conflict. We conclude that competition and corporate governance are substitutes, and that both act to mitigate principal-agent problems.
- Subjects
UNITED States; ECONOMIC competition; CORPORATE governance; TELECOMMUNICATIONS laws &; regulations; TELECOMMUNICATION equipment industry; CULTURAL industries
- Publication
Southwest Business & Economics Journal, 2007, Vol 16, p1
- ISSN
1523-1089
- Publication type
Article