It is well established that state and national laws of corporate governance affect firm value. La Porta et al. [2001] show that firm value is positively associated with the rights of minority shareholders. Daines [2001] finds that firms incorporated in Delaware have higher valuations than other U. S. firms. In this section we study whether variation in firm-specific governance is associated with differences in firm value. More importantly, we analyze whether there was a change in the governance/value