Corporate Governance: An Antidote to Corruption - Examples/Lessons Learned in Bulgaria and Transition Countries

Abstract

The paper considers existing corruption in business-to-business relationships as a symptom of poor corporate governance. Corporate governance problems in the context of transitional or developing countries go beyond the classical problems that result from the separation of ownership and control. Following the new institutional economics approach, the effectiveness of a particular corporate governance system is interdependent with the set of institutions (regulations, contracts and norms) which create self-governing firms in the economy. The paper discusses issues of transperancy, discretion, accountabilty and trust and their relationships with corporate corruption in the Bulgarian context.

Keywords: corporate governance, corruption

JEL Classification: G39