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E-MailThis post relates to an article by Lucian Bebchuk, Alma Cohen and Allen Ferrel, What Matters in Corporate Governance, available here and discussed on the Forum here. Lucian Bebchuk is William J. Friedman and Alicia Townsend Friedman Professor of Law, Economics, and Finance and Director of the Program on Corporate Governance, Harvard Law School. Alma Cohen is Professor of Empirical Practice, Harvard Law School. Allen Ferrell is Greenfield Professor of Securities Law, Harvard Law School.
As of May 2015, more than 300 research studies have applied the Entrenchment Index put forward in a study published by Lucian Bebchuk, Alma Cohen and Allen Ferrell, What Matters in Corporate Governance. The papers using the Entrenchment Index, including many papers in leading journals in law, economics and finance, are listed here.
The Bebchuk-Cohen-Ferrell paper, first circulated in 2004 and published in 2009 in the Review of Financial Studies, identified six corporate governance provisions as especially important, demonstrated empirically the significance of these provisions for firm valuation and put forward a governance index, commonly referred to as the “Entrenchment Index,” based on these six provisions. The paper has been cited by more than 650 research studies, and more than 300 of these studies made use of the index in their own empirical analysis.
The Bebchuk-Cohen-Ferrell paper putting forward the Entrenchment Index is available for download here.
