Corporate Governance and Development

Corporate Governance and Development

The literature shows that good corporate governance generally pays for firms, for markets, and for countries. It is associated with a lower cost of capital, higher returns on equity, greater efficiency, and more favorable treatment of all stakehold...

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Main Author: Claessens, Stijn
Format: Journal Article
Language:English
en_US
Published: Oxford University Press on behalf of the World Bank 2013
Subjects:
COST OF CAPITAL
EXTERNAL FINANCING
GOOD CORPORATE GOVERNANCE
LEGAL ENFORCEMENT
POLITICAL ECONOMY
RETURNS ON EQUITY
TREATMENT OF STAKEHOLDERS
Online Access:http://documents.worldbank.org/curated/en/2013/01/17591912/corporate-governance-development
http://hdl.handle.net/10986/16395
id okr-10986-16395
recordtype oai_dc
spelling okr-10986-163952021-04-23T14:03:30Z Corporate Governance and Development Claessens, Stijn COST OF CAPITAL EXTERNAL FINANCING GOOD CORPORATE GOVERNANCE LEGAL ENFORCEMENT POLITICAL ECONOMY RETURNS ON EQUITY TREATMENT OF STAKEHOLDERS The literature shows that good corporate governance generally pays for firms, for markets, and for countries. It is associated with a lower cost of capital, higher returns on equity, greater efficiency, and more favorable treatment of all stakeholders, although the direction of causality is not always clear. The law and finance literature has documented the important role of institutions aimed at contractual and legal enforcement, including corporate governance, across countries. Using firm level data, researchers have documented relationships between countries corporate governance frameworks on the one hand and performance, valuation, the cost of capital, and access to external financing on the other. Given the benefits of good corporate governance, firms and countries should voluntarily reform more. Resistance by entrenched owners and managers at the firm level and political economy factors at the level of markets and countries partly explain why they do not. 2013-12-19T17:25:03Z 2013-12-19T17:25:03Z 2006-02-23 Journal Article http://documents.worldbank.org/curated/en/2013/01/17591912/corporate-governance-development World Bank Research Observer doi:10.1093/wbro/lkj004 http://hdl.handle.net/10986/16395 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research :: Journal Article
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic COST OF CAPITAL
EXTERNAL FINANCING
GOOD CORPORATE GOVERNANCE
LEGAL ENFORCEMENT
POLITICAL ECONOMY
RETURNS ON EQUITY
TREATMENT OF STAKEHOLDERS
spellingShingle COST OF CAPITAL
EXTERNAL FINANCING
GOOD CORPORATE GOVERNANCE
LEGAL ENFORCEMENT
POLITICAL ECONOMY
RETURNS ON EQUITY
TREATMENT OF STAKEHOLDERS
Claessens, Stijn
Corporate Governance and Development
description The literature shows that good corporate governance generally pays for firms, for markets, and for countries. It is associated with a lower cost of capital, higher returns on equity, greater efficiency, and more favorable treatment of all stakeholders, although the direction of causality is not always clear. The law and finance literature has documented the important role of institutions aimed at contractual and legal enforcement, including corporate governance, across countries. Using firm level data, researchers have documented relationships between countries corporate governance frameworks on the one hand and performance, valuation, the cost of capital, and access to external financing on the other. Given the benefits of good corporate governance, firms and countries should voluntarily reform more. Resistance by entrenched owners and managers at the firm level and political economy factors at the level of markets and countries partly explain why they do not.
format Journal Article
author Claessens, Stijn
author_facet Claessens, Stijn
author_sort Claessens, Stijn
title Corporate Governance and Development
title_short Corporate Governance and Development
title_full Corporate Governance and Development
title_fullStr Corporate Governance and Development
title_full_unstemmed Corporate Governance and Development
title_sort corporate governance and development
publisher Oxford University Press on behalf of the World Bank
publishDate 2013
url http://documents.worldbank.org/curated/en/2013/01/17591912/corporate-governance-development
http://hdl.handle.net/10986/16395
_version_ 1764433599789006848

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