Corporate Governance and Development : An Update

Claessens, Stijn ; Yurtoglu, Burcin

International Finance Corporation, Washington, DC

关键词: ACCOUNTING RULES;    ADVANCED COUNTRIES;    ADVERSE EFFECTS;    AGENCY RISK;    ASSET MANAGEMENT;   

RP-ID  :  67394

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

What do we know about the links betweeneconomic development and corporate governance in emergingmarkets? Stijn Claessens and Burcin Yurtoglu have siftedthrough scores of academic studies on various countries,sectors, and business organizations - from state-ownedenterprises to publicly listed companies - to determine howcorporate governance can influence economic development andwell being, and what is needed to promote good practices.The Focus 10 draws on new evidence that has become availablesince Focus 1: Corporate Governance and Development waspublished in 2003. While the paper reviews researchliterature, it is written to be accessible to thenonacademic audience: board members, investors, governmentregulators, development professionals, and other CGpractitioners. Research findings sited in the Focus include:1) improved corporate governance practices increase firmshare prices; 2) operational performance is higher in bettercorporate governance countries; 3) well governed companieshave less volatile stock prices in times of crisis; 4)companies with boards composed of a higher fraction ofoutsider or independent directors usually have a highermarket valuation; 5) improvements in corporate governancequality lead to higher GDP growth, productivity growth, andthe increased ratio of investment to GDP; 6) when acountry's overall corporate governance and propertyrights systems are weak, voluntary and market corporategovernance mechanisms have limited effectiveness; 7) large,more concentrated ownership can be beneficial, unless thereis a disparity of control and cash flow rights; 8) thequality of shareholder protection positively correlates withthe development of countries' capital markets; and 9)better corporate governance leads to a better developedfinancial system. The paper concludes by identifying severalmain policy and research issues that require further study.For example, more research is needed on family-owned,state-owned or controlled firms that predominate in manysectors and economies. For more publications on IFCSustainability please visit www.ifc.org/sustainabilitypublications.