Should Corporate Governance Concerns Impact Alibaba’s Valuation?

Last week, NYU Stern School of Business professor Aswath Damodaran said that he considered the upcoming Alibaba IPO to be fairly valued at about $66, but he also worried about the ‘corporate governance nightmare’ that long-term investors would have to accept to be a part of the Chinese eCommerce giant. But for someone who routinely champions combining business narrative with analysis, vague concerns aren’t good enough, and this week he has returned to the topic to discuss how he works governance into valuations.

Alibaba (NYSE:BABA)'s stock price: Two schools of thought on corporate governance

Damodaran acknowledges that there are two different schools of thought regarding corporate governance, what he...