In a study published by the Harvard Law School Program on Corporate Governance, What matters in corporate governance?, (the “BCF study”) Bebchuk, Cohen and Ferrell (2009) proposed an index of corporate governance – the Entrenchment Index (“E-Index”). This article provides an update on the far-reaching influence the BCF study has had on subsequent research. According to Google Scholar citation data, as of early 2023, the BCF study was cited by approximately 3,500 research papers (listed here). In addition, a review of these research papers identified approximately 1,500 studies that applied the E-Index and used it in their empirical analysis. A list of studies using the E-Index in their empirical analysis is available here.
The list of studies applying the E-Index includes empirical studies published in:
- Leading finance journals such as Journal of Finance, Journal of Financial EconomicsAnd the Journal of Financial Studies;
- Major economics journals such as the journal of political economy And Journal of Economics and Statistics;
- Leading law and economics journals such as the Journal of Law and Economics And Journal of Law, Economics and Organization; And
- Major accounting journals, such as the Journal of Accounting and Economics, Accounting and Public Policy Journal, And The accounting journal.
THE BCF study was first broadcast in 2004 and was published in 2009 in the Review of financial studies. The BCF study identified six corporate governance provisions as being particularly important, demonstrated empirically the importance of these provisions for the evaluation of companies and proposed an “embeddedness index”, the E-Index, based on these six provisions.
The BCF study is available here.