Corporate Governance at Chicago Booth

By Abbie J. Smith

This issue features research by Chicago Booth faculty that goes beyond the traditional focus to consider the influence of lenders, laws, and regulators on firms' activities, and conflicts of interest among a firm's shareholders.

Lenders in Charge

The Role of Creditors in Corporate Governance

Research by Amir Sufi

Largely overlooked, creditors exert more control over companies than previously thought.

Privileged Lending

Syndicate Loans and Inside Information

Research by Abbie J. Smith and Regina Wittenberg-Moerman

Participating in a syndicated loan may be far more valuable to institutional investors than simply the return on lending money.

Schumpeter's Hand

The Impact of Banking Deregulation on Economic Growth

Research by Marianne Bertrand

Drastically reducing government intervention in banks' lending decisions can lead to a better allocation of credit and faster economic growth.

Diverging Motives

The Conflict of Interest between Shareholders

Research by Gregor Matvos

When voting on a merger, shareholders of the acquiring firm may not always act in the best interest of the company.

Attracting Foreign Capital

Why Foreigners Invest Less in Poorly Governed Firms

Research by Christian Leuz

Firms with weak corporate governance are much harder and more costly for foreign investors to figure out.

Extreme Measures

Corporate Governance and Innovation

Research by Haresh Sapra

To get companies to innovate, anti-takeover laws must either be absent or very severe.