Corporate Governance in Emerging Markets: A Survey
Board of Governors of the Federal Reserve System (FRB); University of Amsterdam - Finance Group; Centre for Economic Policy Research (CEPR); Tinbergen Institute; European Corporate Governance Institute (ECGI)
B. Burcin Yurtoglu
WHU - Otto Beisheim School of Management
January 15, 2012
This paper reviews recent research on corporate governance, with a special focus on emerging markets. It finds that better corporate frameworks benefit firms through greater access to financing, lower cost of capital, better performance, and more favorable treatment of all stakeholders. Numerous studies show these channels to operate at the level of firms, sectors and countries - with causality increasingly often clearly identified. Evidence also shows that voluntary and market corporate governance mechanisms have less effect when a country’s governance system is weak. Importantly, how corporate governance regimes change over time and how this impacts firms are receiving more attention recently. Less evidence is available on the direct links between corporate governance and social and environmental performance. The paper concludes by identifying issues requiring further study, including the special corporate governance issues of banks, and family-owned and state-owned firms, and the nature and determinants of public and private enforcement.
Number of Pages in PDF File: 77
Keywords: Corporate Governance, Emerging Markets, Survey
JEL Classification: G30, G32, O16
Date posted: January 20, 2012 ; Last revised: January 22, 2012
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