A referee suggests that we control for log GDP per capita in 1994 as a measure of non-finance-related institutional development. In this case, the efficiency of the judiciary variable loses its significance. However, corruption, rule of law, and corporate governance are jointly significant with log GDP per capita (none of the variables are individually significant.) The anti-director rights variable remains significant at the 10% level by itself. The other governance variables lose their individual significance but are highly significant jointly with log GDP per capita. There is a high level of correlation between log GDP per capita and judicial. efficiency (0.7) and rule of law and corruption, but low correlation with anti-director rights (0.05 and not significant). These results suggest that while corporate governance variables have some effects independent of the level of non-financial institutional development, there is also substantial overlap. For more on the correlation between corporate governance and other measures of institution development, see La Porta et al. (1999a).