Corporate Governance and Development

Claessens, Stijn

Oxford University Press on behalf of the World Bank

关键词: COST OF CAPITAL;    EXTERNAL FINANCING;    GOOD CORPORATE GOVERNANCE;    LEGAL ENFORCEMENT;    POLITICAL ECONOMY;   

DOI  :  10.1093/wbro/lkj004
RP-ID  :  76755

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The literature shows that good corporategovernance generally pays for firms, for markets, and forcountries. It is associated with a lower cost of capital,higher returns on equity, greater efficiency, and morefavorable treatment of all stakeholders, although thedirection of causality is not always clear. The law andfinance literature has documented the important role ofinstitutions aimed at contractual and legal enforcement,including corporate governance, across countries. Using firmlevel data, researchers have documented relationshipsbetween countries corporate governance frameworks on the onehand and performance, valuation, the cost of capital, andaccess to external financing on the other. Given thebenefits of good corporate governance, firms and countriesshould voluntarily reform more. Resistance by entrenchedowners and managers at the firm level and political economyfactors at the level of markets and countries partly explainwhy they do not.