Uses and Limits of Conventional Corporate Governance Instruments: Analysis and Guidance for Reform (Part Two)

Abstract

This is the second half of a two-part Private Sector Opinion published by the Global Corporate Governance Forum of the World Bank Group. Part One, published in June 2009, examined the uses and limits of five conventional corporate governance instruments - transparency, independent monitoring, economic alignment, shareholder rights, and financial liability - and suggested ways to improve their application. Part Two, the essay herein, recommends how policymakers should approach corporate governance reform generally, with a view toward strengthening the effectiveness of conventional corporate governance instruments.

The integrated version of this article is available at http://ssrn.com/abstract=1409370.

Keywords: corporate governance reform, unintended consequences, behavior, values, comparative

JEL Classification: G34, G38