Corporate Governance and Development : An Update
What do we know about the links between economic development and corporate governance in emerging markets? Stijn Claessens and Burcin Yurtoglu have sifted through scores of academic studies on various countries, sectors, and business organizations...
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| Format: | Working Paper |
| Language: | English en_US |
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International Finance Corporation, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/613011468336854015/Corporate-governance-and-development-an-update http://hdl.handle.net/10986/26874 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English en_US |
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ACCOUNTING RULES ADVANCED COUNTRIES ADVERSE EFFECTS AGENCY RISK ASSET MANAGEMENT BANK CREDIT BANKRUPTCY BOOK VALUE BORROWER BUSINESS OPPORTUNITIES CAPITAL INFLOWS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CASH FLOW COLLATERAL COMMERCIAL BANKS COMPETITION POLICY CONFLICT OF INTERESTS CONSUMER SPENDING CORPORATE FINANCE CORPORATE GOVERNANCE CORPORATE GOVERNANCE BEHAVIOR CORPORATE GOVERNANCE FRAMEWORK CORPORATE GOVERNANCE REFORM CORPORATE GOVERNANCE REGIME CORPORATE GOVERNANCE STANDARDS CORPORATE OWNERSHIP CORPORATE PERFORMANCE CORPORATE SOCIAL RESPONSIBILITY COST OF CAPITAL COST OF EQUITY COUNTRY TO COUNTRY CREDIT RISKS CROSS-BORDER FINANCING CROSS-BORDER ISSUES CROSS-BORDER TRANSACTIONS CURRENCY DEBT DEBT FINANCING DEPOSIT DEVELOPING COUNTRIES DEVELOPMENT FINANCE DIVIDENDS ECONOMIC DEVELOPMENT ECONOMIC PERFORMANCE ECONOMIC POWERS EMERGING MARKET EMERGING MARKET COUNTRIES EMERGING MARKET ECONOMIES EMERGING MARKETS ENFORCEMENT OF CONTRACTS ENVIRONMENTAL PERFORMANCE EQUITY CAPITAL EQUITY INVESTMENTS EXPOSURE EXTERNAL FINANCING FEDERAL RESERVE FINANCE CORPORATION FINANCIAL CONGLOMERATES FINANCIAL CRISIS FINANCIAL DEREGULATION FINANCIAL DERIVATIVE FINANCIAL DEVELOPMENT FINANCIAL INNOVATION FINANCIAL INSTITUTION FINANCIAL INTEGRATION FINANCIAL INTERMEDIARIES FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEMS FINANCIAL VOLATILITY FIRM PERFORMANCE FIRM VALUATION FOREIGN INVESTORS FRAUD FUTURE CASH FLOWS GLOBAL ECONOMY GLOBAL FINANCIAL SYSTEM GLOBAL MARKET GLOBALIZATION GOOD GOVERNANCE GOVERNANCE INDEX GOVERNANCE MECHANISMS GOVERNANCE PRACTICES GROWTH RATE HEDGE FUNDS INCOME INCOME GROUP INDIVIDUAL FIRM INDIVIDUAL FIRMS INDUSTRIAL COUNTRIES INFORMATION ASYMMETRIES INFORMATION SYSTEMS INITIAL PUBLIC OFFERING INITIAL PUBLIC OFFERINGS INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSURANCE INTANGIBLE INTANGIBLE ASSETS INTERNATIONAL FINANCE INVESTMENT DECISIONS INVESTOR PROTECTION JUDICIAL EFFICIENCY JUDICIAL SYSTEM LEGAL DEVELOPMENT LEGAL ENFORCEMENT LEGAL ENVIRONMENT LEGAL FRAMEWORK LEGAL FRAMEWORKS LEGAL PROTECTION LEGAL SYSTEM LIBERALIZATION LIQUID MARKETS LIQUIDITY MARKET CAPITALIZATION MARKET DEVELOPMENT MARKET PENETRATION MARKET VALUATION MARKET VOLATILITY MINORITY INVESTORS MINORITY SHAREHOLDER MINORITY SHAREHOLDER RIGHTS MONOPOLY MORAL HAZARD MUTUAL FUNDS NET CAPITAL OUTPUT OWNERSHIP STRUCTURE OWNERSHIP STRUCTURES PENSION PENSION FUNDS PENSIONS POLITICAL ECONOMY PORTFOLIO POVERTY ALLEVIATION PRICE DISCOVERY PRICE MOVEMENTS PRIVATIZATION PROPERTY RIGHTS PROTECTION OF MINORITY SHAREHOLDERS RATE OF RETURN REGULATORS REGULATORY FRAMEWORK RETIREMENT SAVINGS RETIREMENT SYSTEMS RISK MANAGEMENT RISK OF EXPROPRIATION SAVINGS ACCOUNT SCANDALS SECURITIES SECURITIES MARKETS SECURITIES REGULATOR SHAREHOLDER PROTECTION SHAREHOLDERS SHAREHOLDERS RIGHTS SOCIAL COSTS SOCIAL ISSUE STOCK EXCHANGE STOCK MARKET STOCK MARKET CAPITALIZATION STOCK PRICE SYSTEMIC RISKS TRANSITION COUNTRIES TRANSPARENCY TURNOVER TURNOVER RATIO TURNOVER RATIOS WEAK CORPORATE GOVERNANCE WEAK ENFORCEMENT WORLD DEVELOPMENT INDICATORS |
| spellingShingle |
ACCOUNTING RULES ADVANCED COUNTRIES ADVERSE EFFECTS AGENCY RISK ASSET MANAGEMENT BANK CREDIT BANKRUPTCY BOOK VALUE BORROWER BUSINESS OPPORTUNITIES CAPITAL INFLOWS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CASH FLOW COLLATERAL COMMERCIAL BANKS COMPETITION POLICY CONFLICT OF INTERESTS CONSUMER SPENDING CORPORATE FINANCE CORPORATE GOVERNANCE CORPORATE GOVERNANCE BEHAVIOR CORPORATE GOVERNANCE FRAMEWORK CORPORATE GOVERNANCE REFORM CORPORATE GOVERNANCE REGIME CORPORATE GOVERNANCE STANDARDS CORPORATE OWNERSHIP CORPORATE PERFORMANCE CORPORATE SOCIAL RESPONSIBILITY COST OF CAPITAL COST OF EQUITY COUNTRY TO COUNTRY CREDIT RISKS CROSS-BORDER FINANCING CROSS-BORDER ISSUES CROSS-BORDER TRANSACTIONS CURRENCY DEBT DEBT FINANCING DEPOSIT DEVELOPING COUNTRIES DEVELOPMENT FINANCE DIVIDENDS ECONOMIC DEVELOPMENT ECONOMIC PERFORMANCE ECONOMIC POWERS EMERGING MARKET EMERGING MARKET COUNTRIES EMERGING MARKET ECONOMIES EMERGING MARKETS ENFORCEMENT OF CONTRACTS ENVIRONMENTAL PERFORMANCE EQUITY CAPITAL EQUITY INVESTMENTS EXPOSURE EXTERNAL FINANCING FEDERAL RESERVE FINANCE CORPORATION FINANCIAL CONGLOMERATES FINANCIAL CRISIS FINANCIAL DEREGULATION FINANCIAL DERIVATIVE FINANCIAL DEVELOPMENT FINANCIAL INNOVATION FINANCIAL INSTITUTION FINANCIAL INTEGRATION FINANCIAL INTERMEDIARIES FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEMS FINANCIAL VOLATILITY FIRM PERFORMANCE FIRM VALUATION FOREIGN INVESTORS FRAUD FUTURE CASH FLOWS GLOBAL ECONOMY GLOBAL FINANCIAL SYSTEM GLOBAL MARKET GLOBALIZATION GOOD GOVERNANCE GOVERNANCE INDEX GOVERNANCE MECHANISMS GOVERNANCE PRACTICES GROWTH RATE HEDGE FUNDS INCOME INCOME GROUP INDIVIDUAL FIRM INDIVIDUAL FIRMS INDUSTRIAL COUNTRIES INFORMATION ASYMMETRIES INFORMATION SYSTEMS INITIAL PUBLIC OFFERING INITIAL PUBLIC OFFERINGS INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSURANCE INTANGIBLE INTANGIBLE ASSETS INTERNATIONAL FINANCE INVESTMENT DECISIONS INVESTOR PROTECTION JUDICIAL EFFICIENCY JUDICIAL SYSTEM LEGAL DEVELOPMENT LEGAL ENFORCEMENT LEGAL ENVIRONMENT LEGAL FRAMEWORK LEGAL FRAMEWORKS LEGAL PROTECTION LEGAL SYSTEM LIBERALIZATION LIQUID MARKETS LIQUIDITY MARKET CAPITALIZATION MARKET DEVELOPMENT MARKET PENETRATION MARKET VALUATION MARKET VOLATILITY MINORITY INVESTORS MINORITY SHAREHOLDER MINORITY SHAREHOLDER RIGHTS MONOPOLY MORAL HAZARD MUTUAL FUNDS NET CAPITAL OUTPUT OWNERSHIP STRUCTURE OWNERSHIP STRUCTURES PENSION PENSION FUNDS PENSIONS POLITICAL ECONOMY PORTFOLIO POVERTY ALLEVIATION PRICE DISCOVERY PRICE MOVEMENTS PRIVATIZATION PROPERTY RIGHTS PROTECTION OF MINORITY SHAREHOLDERS RATE OF RETURN REGULATORS REGULATORY FRAMEWORK RETIREMENT SAVINGS RETIREMENT SYSTEMS RISK MANAGEMENT RISK OF EXPROPRIATION SAVINGS ACCOUNT SCANDALS SECURITIES SECURITIES MARKETS SECURITIES REGULATOR SHAREHOLDER PROTECTION SHAREHOLDERS SHAREHOLDERS RIGHTS SOCIAL COSTS SOCIAL ISSUE STOCK EXCHANGE STOCK MARKET STOCK MARKET CAPITALIZATION STOCK PRICE SYSTEMIC RISKS TRANSITION COUNTRIES TRANSPARENCY TURNOVER TURNOVER RATIO TURNOVER RATIOS WEAK CORPORATE GOVERNANCE WEAK ENFORCEMENT WORLD DEVELOPMENT INDICATORS Claessens, Stijn Yurtoglu, Burcin Corporate Governance and Development : An Update |
| relation |
Global Corporate Governance Forum Focus;No. 10 |
| description |
What do we know about the links between
economic development and corporate governance in emerging
markets? Stijn Claessens and Burcin Yurtoglu have sifted
through scores of academic studies on various countries,
sectors, and business organizations - from state-owned
enterprises to publicly listed companies - to determine how
corporate governance can influence economic development and
well being, and what is needed to promote good practices.
The Focus 10 draws on new evidence that has become available
since Focus 1: Corporate Governance and Development was
published in 2003. While the paper reviews research
literature, it is written to be accessible to the
nonacademic audience: board members, investors, government
regulators, development professionals, and other CG
practitioners. Research findings sited in the Focus include:
1) improved corporate governance practices increase firm
share prices; 2) operational performance is higher in better
corporate governance countries; 3) well governed companies
have less volatile stock prices in times of crisis; 4)
companies with boards composed of a higher fraction of
outsider or independent directors usually have a higher
market valuation; 5) improvements in corporate governance
quality lead to higher GDP growth, productivity growth, and
the increased ratio of investment to GDP; 6) when a
country's overall corporate governance and property
rights systems are weak, voluntary and market corporate
governance mechanisms have limited effectiveness; 7) large,
more concentrated ownership can be beneficial, unless there
is a disparity of control and cash flow rights; 8) the
quality of shareholder protection positively correlates with
the development of countries' capital markets; and 9)
better corporate governance leads to a better developed
financial system. The paper concludes by identifying several
main policy and research issues that require further study.
For example, more research is needed on family-owned,
state-owned or controlled firms that predominate in many
sectors and economies. For more publications on IFC
Sustainability please visit www.ifc.org/sustainabilitypublications. |
| format |
Working Paper |
| author |
Claessens, Stijn Yurtoglu, Burcin |
| author_facet |
Claessens, Stijn Yurtoglu, Burcin |
| author_sort |
Claessens, Stijn |
| title |
Corporate Governance and Development : An Update |
| title_short |
Corporate Governance and Development : An Update |
| title_full |
Corporate Governance and Development : An Update |
| title_fullStr |
Corporate Governance and Development : An Update |
| title_full_unstemmed |
Corporate Governance and Development : An Update |
| title_sort |
corporate governance and development : an update |
| publisher |
International Finance Corporation, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/613011468336854015/Corporate-governance-and-development-an-update http://hdl.handle.net/10986/26874 |
| _version_ |
1764461502153097216 |
| spelling |
okr-10986-268742021-04-23T14:04:35Z Corporate Governance and Development : An Update Claessens, Stijn Yurtoglu, Burcin ACCOUNTING RULES ADVANCED COUNTRIES ADVERSE EFFECTS AGENCY RISK ASSET MANAGEMENT BANK CREDIT BANKRUPTCY BOOK VALUE BORROWER BUSINESS OPPORTUNITIES CAPITAL INFLOWS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CASH FLOW COLLATERAL COMMERCIAL BANKS COMPETITION POLICY CONFLICT OF INTERESTS CONSUMER SPENDING CORPORATE FINANCE CORPORATE GOVERNANCE CORPORATE GOVERNANCE BEHAVIOR CORPORATE GOVERNANCE FRAMEWORK CORPORATE GOVERNANCE REFORM CORPORATE GOVERNANCE REGIME CORPORATE GOVERNANCE STANDARDS CORPORATE OWNERSHIP CORPORATE PERFORMANCE CORPORATE SOCIAL RESPONSIBILITY COST OF CAPITAL COST OF EQUITY COUNTRY TO COUNTRY CREDIT RISKS CROSS-BORDER FINANCING CROSS-BORDER ISSUES CROSS-BORDER TRANSACTIONS CURRENCY DEBT DEBT FINANCING DEPOSIT DEVELOPING COUNTRIES DEVELOPMENT FINANCE DIVIDENDS ECONOMIC DEVELOPMENT ECONOMIC PERFORMANCE ECONOMIC POWERS EMERGING MARKET EMERGING MARKET COUNTRIES EMERGING MARKET ECONOMIES EMERGING MARKETS ENFORCEMENT OF CONTRACTS ENVIRONMENTAL PERFORMANCE EQUITY CAPITAL EQUITY INVESTMENTS EXPOSURE EXTERNAL FINANCING FEDERAL RESERVE FINANCE CORPORATION FINANCIAL CONGLOMERATES FINANCIAL CRISIS FINANCIAL DEREGULATION FINANCIAL DERIVATIVE FINANCIAL DEVELOPMENT FINANCIAL INNOVATION FINANCIAL INSTITUTION FINANCIAL INTEGRATION FINANCIAL INTERMEDIARIES FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEMS FINANCIAL VOLATILITY FIRM PERFORMANCE FIRM VALUATION FOREIGN INVESTORS FRAUD FUTURE CASH FLOWS GLOBAL ECONOMY GLOBAL FINANCIAL SYSTEM GLOBAL MARKET GLOBALIZATION GOOD GOVERNANCE GOVERNANCE INDEX GOVERNANCE MECHANISMS GOVERNANCE PRACTICES GROWTH RATE HEDGE FUNDS INCOME INCOME GROUP INDIVIDUAL FIRM INDIVIDUAL FIRMS INDUSTRIAL COUNTRIES INFORMATION ASYMMETRIES INFORMATION SYSTEMS INITIAL PUBLIC OFFERING INITIAL PUBLIC OFFERINGS INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSURANCE INTANGIBLE INTANGIBLE ASSETS INTERNATIONAL FINANCE INVESTMENT DECISIONS INVESTOR PROTECTION JUDICIAL EFFICIENCY JUDICIAL SYSTEM LEGAL DEVELOPMENT LEGAL ENFORCEMENT LEGAL ENVIRONMENT LEGAL FRAMEWORK LEGAL FRAMEWORKS LEGAL PROTECTION LEGAL SYSTEM LIBERALIZATION LIQUID MARKETS LIQUIDITY MARKET CAPITALIZATION MARKET DEVELOPMENT MARKET PENETRATION MARKET VALUATION MARKET VOLATILITY MINORITY INVESTORS MINORITY SHAREHOLDER MINORITY SHAREHOLDER RIGHTS MONOPOLY MORAL HAZARD MUTUAL FUNDS NET CAPITAL OUTPUT OWNERSHIP STRUCTURE OWNERSHIP STRUCTURES PENSION PENSION FUNDS PENSIONS POLITICAL ECONOMY PORTFOLIO POVERTY ALLEVIATION PRICE DISCOVERY PRICE MOVEMENTS PRIVATIZATION PROPERTY RIGHTS PROTECTION OF MINORITY SHAREHOLDERS RATE OF RETURN REGULATORS REGULATORY FRAMEWORK RETIREMENT SAVINGS RETIREMENT SYSTEMS RISK MANAGEMENT RISK OF EXPROPRIATION SAVINGS ACCOUNT SCANDALS SECURITIES SECURITIES MARKETS SECURITIES REGULATOR SHAREHOLDER PROTECTION SHAREHOLDERS SHAREHOLDERS RIGHTS SOCIAL COSTS SOCIAL ISSUE STOCK EXCHANGE STOCK MARKET STOCK MARKET CAPITALIZATION STOCK PRICE SYSTEMIC RISKS TRANSITION COUNTRIES TRANSPARENCY TURNOVER TURNOVER RATIO TURNOVER RATIOS WEAK CORPORATE GOVERNANCE WEAK ENFORCEMENT WORLD DEVELOPMENT INDICATORS What do we know about the links between economic development and corporate governance in emerging markets? Stijn Claessens and Burcin Yurtoglu have sifted through scores of academic studies on various countries, sectors, and business organizations - from state-owned enterprises to publicly listed companies - to determine how corporate governance can influence economic development and well being, and what is needed to promote good practices. The Focus 10 draws on new evidence that has become available since Focus 1: Corporate Governance and Development was published in 2003. While the paper reviews research literature, it is written to be accessible to the nonacademic audience: board members, investors, government regulators, development professionals, and other CG practitioners. Research findings sited in the Focus include: 1) improved corporate governance practices increase firm share prices; 2) operational performance is higher in better corporate governance countries; 3) well governed companies have less volatile stock prices in times of crisis; 4) companies with boards composed of a higher fraction of outsider or independent directors usually have a higher market valuation; 5) improvements in corporate governance quality lead to higher GDP growth, productivity growth, and the increased ratio of investment to GDP; 6) when a country's overall corporate governance and property rights systems are weak, voluntary and market corporate governance mechanisms have limited effectiveness; 7) large, more concentrated ownership can be beneficial, unless there is a disparity of control and cash flow rights; 8) the quality of shareholder protection positively correlates with the development of countries' capital markets; and 9) better corporate governance leads to a better developed financial system. The paper concludes by identifying several main policy and research issues that require further study. For example, more research is needed on family-owned, state-owned or controlled firms that predominate in many sectors and economies. For more publications on IFC Sustainability please visit www.ifc.org/sustainabilitypublications. 2017-06-05T15:06:42Z 2017-06-05T15:06:42Z 2012-04-23 Working Paper http://documents.worldbank.org/curated/en/613011468336854015/Corporate-governance-and-development-an-update http://hdl.handle.net/10986/26874 English en_US Global Corporate Governance Forum Focus;No. 10 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo International Finance Corporation International Finance Corporation, Washington, DC Publications & Research :: Working Paper Publications & Research |