http://hdl.handle.net/20.500.14342/6178 2026-04-27T16:51:52Z 2026-04-27T16:51:52Z Dumitrescu, Ariadna Zakriya, Mohammed http://hdl.handle.net/20.500.14342/6186 2026-04-25T02:01:07Z 2024-05-01T00:00:00Z

Measuring Corporate Governance Using Antitakeover Provisions: A Dynamically Weighted Approach Dumitrescu, Ariadna; Zakriya, Mohammed This paper presents the "nG (new Governance) Index", an unequal-weighted measure of corporate governance that dynamically captures the heterogeneity of its individual antitakeover components, as an alternative to the equal-weighted indices proposed in the related literature. Our findings show that all antitakeover provisions do not equally contribute to the firms' corporate governance quality, and our proposed nG-Index therefore traces the governance--performance relationship more persistently than an equal-weighted measure does. Further analysis reveals that an nG-Index based zero-investment hedge, going long on a poor governance portfolio and shorting the good governance one, would generate an abnormal return of over 1.28% per month, or about 15% per year. In contrast, a comparable hedge using equal-weighted index shows no significant abnormal returns.

2024-05-01T00:00:00Z