Corporate Governance in Emerging Markets: A Survey

77 Pages Posted: 20 Jan 2012 Last revised: 22 Jan 2012

See all articles by Stijn Claessens

Stijn Claessens

Bank for International Settlements (BIS)

B. Burcin Yurtoglu

WHU - Otto Beisheim School of Management

Date Written: January 15, 2012

Abstract

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.

Keywords: Corporate Governance, Emerging Markets, Survey

JEL Classification: G30, G32, O16

Suggested Citation

Claessens, Stijn and Yurtoglu, B. Burcin, Corporate Governance in Emerging Markets: A Survey (January 15, 2012). Available at SSRN: https://ssrn.com/abstract=1988880 or http://dx.doi.org/10.2139/ssrn.1988880

Stijn Claessens

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

B. Burcin Yurtoglu (Contact Author)

WHU - Otto Beisheim School of Management ( email )

Chair of Corporate Finance
Burgplatz 2
Vallendar, 56179
Germany
+49 261 6509-721 (Phone)
+49 261 6509-729 (Fax)

HOME PAGE: http://www.whu.edu/forschung/fakultaet/finance-group/corporate-finance/

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