Entrepreneurship, Governance and Ethics

The chapters of this book are a selection of papers presented at a joint conference on Law, Ethics and Finance was held at the York University Schulich School of Business, 16–18 September, 2010. This book highlights with empirical

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Robert Cressy · Douglas Cumming · Christine Mallin Editors

Entrepreneurship, Governance and Ethics

Previously published in the Journal of Business Ethics Volume 95 Supplement 2, 2010

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Editors Robert Cressy University of Birmingham School of Business Edgbaston Road B15 2TY Birmingham United Kingdom [email protected]

Douglas Cumming York University Schulich School of Business Keele Street 4700 M3J 1P3 Toronto Ontario Canada [email protected]

Christine Mallin University of Birmingham Birmingham Business School Edgbaston Park Rd. B15 2TT Birmingham United Kingdom [email protected]

ISBN: 978-94-007-2925-4 Springer Dordrecht Heidelberg London New York Library of Congress Control Number: 2011944513 © Springer Science+Business Media B.V. 2012 No part of this work may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming, recording or otherwise, without written permission from the Publisher, with the exception of any material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work.

Printed on acid-free paper springer.com

Contents

R. Cressy, D. Cumming and C. Mallin / Entrepreneurship, Governance and Ethics M. Scarlata and L. Alemany / Deal Structuring in Philanthropic Venture Capital Investments: Financing Instrument, Valuation and Covenants

1–4 5–29

S. A. Johan and D. Najar / The Role of Corruption, Culture, and Law in Investment Fund Manager Fees

31–56

D. Cumming, G. Fleming, S. Johan and M. Takeuchi / Legal Protection, Corruption and Private Equity Returns in Asia

57–77

C. Gainet / Exploring the Impact of Legal Systems and Financial Structure on Corporate Responsibility

79–106

C. Mallin and K. Ow-Yong / The UK Alternative Investment Market – Ethical Dimensions

107–123

S. Bonini and D. Boraschi / Corporate Scandals and Capital Structure

125–153

J. Cohen, Y. Ding, C. Lesage and H. Stolowy / Corporate Fraud and Managers’ Behavior: Evidence from the Press

155–199

W. Hou and G. Moore / Player and Referee Roles Held Jointly: The Effect of State Ownership on China’s Regulatory Enforcement Against Fraud

201–219

S. Ding, C. Jia, Y. Li and Z. Wu / Reactivity and Passivity After Enforcement Actions: Better Late Than Never

221–243

Y. Li, M. Wright and L. Scholes / Chinese Management Buyouts and Board Transformation

245–264

Ó Springer 2011

Journal of Business Ethics (2010) 95:117–120 DOI 10.1007/s10551-011-0848-3

Entrepreneurship, Governance and Ethics

former President and CEO of the CFA Institute, Susan Wolburgh Jenah, CEO of the Investment Industry Regulatory Organisation of Canada. The panel members discussed current topics on ethics, market integrity and the role of regulation in facilitating market integrity. The panel made particular note of the lack of a regulatory structure in Canada for facilitating financial market integrity, and this deficiency increases the cost of capital for Canadian firms. The items discussed