I analyze the impact of three institutional factors (legal origin, perceived corruption level and ownership structures) on the cash flow sensitivity of investment in ten emerging markets (Hong Kong, Indonesia, India, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand and Turkey.). Common Law origin countries and countries which reveal a low level of perceived corruption indicate economically and statistically lower sensitivities. The impact of ownership is less conclusive, which is likely to be a consequence of complex structure.
I analyze the impact of three institutional factors (legal origin, perceived corruption level and ownership structures) on the cash flow sensitivity o...