I am a full professor at IE Business School in Madrid. On this blog, I discuss my research on corporate governance as well as topical issues on corporate governance and related issues.
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How Female Directors Affect Dividend Policy
A commentary in the Fortune Magazine mentions my research on how female directors influence dividend policy. The study itself can be downloaded for free from the Journal of Corporate Finance. The commentary can be found here.
I haven't posted any of these corporate governance case studies for a while. As the updated version of my corporate governance textbook is about to be published on 11 March 2018, I thought it was a good time to investigate the corporate governance of another interesting company. The company I have chosen is the Daily Mail and General Trust Plc ( DMGT Plc ), a UK company. This is a media company which owns a.o. the tabloid The Daily Mail and the free newspaper Metro . It also has a holding in Euromoney Institutional Plc and Zoopla . An example of a Daily Mail front page An example of a Metro front page I chose DMGT Plc as it is not your run-of-the-mill UK stock-market listed Plc. The typical example of a UK exchange-listed corporation would be a Plc with dispersed ownership and weak control (see Section 3.3 of my textbook International Corporate Governance or its updated version Corporate Governance. A Global Perspective ). This is what I call combination A
Philosophy of the Book Existing textbooks on corporate governance tend to have a strong focus on UK and/or US corporate governance. This focus is somewhat surprising as the UK and US corporate governance systems have features which clearly set them apart from pretty much the rest of the world. Indeed, the typical British and American stock-market listed firm is widely held (held by many shareholders) and control therefore lies with the management rather than the shareholders. In contrast, most stock-exchange listed firms from the rest of the world have a large shareholder whose control is substantial enough to have a significant influence over the firm’s affairs. Given these marked differences in ownership and control, corporate governance issues emerging in non-UK and non-US firms tend to be very different from those that may affect British and American companies. Hence, it is important for a textbook to bear in mind the diversity of ownership and control a