Corporate Governance in Emerging Markets : Why It Matters to Investors—and What They Can Do About It
What should investors do when scholarly research on corporate governance in emerging markets does not provide conclusive evidence on which aspects of governance matter most across all the emerging markets and how they affect firm performance? A res...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2011/01/15107565/corporate-governance-emerging-markets-matters-investors-can http://hdl.handle.net/10986/11071 |
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okr-10986-11071 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
ACCOUNTING ACCOUNTING STANDARDS AGENCY COSTS AGENCY PROBLEM ASSET GROWTH ASSET MANAGEMENT AUDIT COMMITTEE BOARD MEETINGS BOARD MEMBERS BOARDS OF DIRECTORS BONDHOLDERS BRIBERY BUSINESS ETHICS BUSINESS LAWYER CAPITAL MARKET CAPITAL MARKETS CAPITAL RATIO CARBON DISCLOSURE CASH FLOW CEO CEOS CHARTERED ACCOUNTANTS CHECKS CHIEF EXECUTIVES COMPANY LAW COMPARATIVE CORPORATE GOVERNANCE CONFLICTS OF INTEREST CONTROLLING SHAREHOLDER CONTROLLING SHAREHOLDERS CORPORATE BEHAVIOR CORPORATE BOARDS CORPORATE CULTURE CORPORATE FINANCE CORPORATE GOVERNANCE CORPORATE GOVERNANCE CODES CORPORATE GOVERNANCE MECHANISMS CORPORATE GOVERNANCE REFORM CORPORATE GOVERNANCE STANDARDS CORPORATE OWNERSHIP CORPORATE SOCIAL RESPONSIBILITY CORPORATE TRANSPARENCY CORPORATIONS CORRUPT PRACTICES CORRUPTION COUNTRY TO COUNTRY CREDITORS CRITICAL MASS DERIVATIVE DEVELOPING COUNTRIES DIRECTOR INDEPENDENCE DIVERSIFIED PORTFOLIO DOMESTIC COMPANIES DUMMY VARIABLE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET COMPANIES EMERGING MARKET FIRMS EMERGING MARKETS EQUITY INVESTORS EQUITY PRICES EXPROPRIATION FAMILY BUSINESS FAMILY FIRM FAMILY FIRMS FINANCE CORPORATION FINANCIAL CAPITAL FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL MARKETS FINANCIAL STATEMENTS FINANCIAL STUDIES FINANCIAL VOLATILITY FIRM PERFORMANCE FIRM STRUCTURES FIRM-LEVEL CORPORATE GOVERNANCE FIRM-LEVEL GOVERNANCE FRAUD GLOBAL CORPORATE GOVERNANCE GLOBAL ECONOMY GLOBAL GROSS DOMESTIC PRODUCT GLOBAL INVESTOR GLOBAL PRIVATE SECTOR GOOD GOVERNANCE GOVERNANCE ARRANGEMENTS GOVERNANCE CHALLENGE GOVERNANCE INDEXES GOVERNANCE INDICATORS GOVERNANCE ISSUES GOVERNANCE MECHANISM GOVERNANCE MECHANISMS GOVERNANCE PRACTICES GOVERNANCE RESEARCH GROUP COMPANIES GROUP OF INVESTORS GROWTH RATE HOLDING HOLDING COMPANY HUMAN CAPITAL ILLIQUIDITY INCENTIVE STRUCTURES INCOME INDEPENDENT BOARDS INDEPENDENT DIRECTORS INDEPENDENT OVERSIGHT INDIVIDUAL COMPANIES INDIVIDUAL INVESTORS INFORMATION ASYMMETRY INFORMATION FLOWS INSIDER TRADING INSTITUTIONAL FRAMEWORK INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSURERS INTERESTS OF MINORITY SHAREHOLDERS INTERNATIONAL BUSINESS INTERNATIONAL BUSINESS TRANSACTIONS INTERNATIONAL CORPORATE GOVERNANCE INTERNATIONAL FINANCE INTERNATIONAL INVESTORS INVESTIGATION INVESTMENT DECISIONS INVESTMENT POLICIES INVESTOR CONFIDENCE INVESTOR PERSPECTIVE INVESTOR PROTECTION INVESTOR PROTECTIONS INVESTOR RISKS JOURNAL OF CORPORATION LAW JURISDICTIONS LABOR MARKET LABOR MARKETS LAW ENFORCEMENT LEGAL INFRASTRUCTURES LEGAL REGIMES LEGAL SYSTEMS LIEN LIMITED LIQUIDITY LOAN LOCAL INSTITUTIONS MAJORITY SHAREHOLDERS MANAGERS MARKET COMPETITION MARKET DOWNTURNS MARKET GOVERNANCE MARKET PRICE MARKET VALUE MINORITY INTERESTS MINORITY INVESTOR MINORITY INVESTORS MINORITY OWNER MINORITY SHAREHOLDER MINORITY SHAREHOLDERS MONETARY FUND OWNERSHIP CONCENTRATION OWNERSHIP STRUCTURE OWNERSHIP STRUCTURES PARTY POLITICAL ECONOMY POLITICAL INSTITUTIONS POLITICAL INTERFERENCE PORTFOLIO PORTFOLIO HOLDINGS PORTFOLIO INVESTMENT PROXY PROXY VOTING PUBLIC COMPANIES PUBLIC GOVERNANCE PUBLIC OFFICIALS REGULATORS REGULATORY QUALITY REPAYMENT RETURN RETURN ON ASSETS RISK FACTOR RULE OF LAW SALES GROWTH SAVINGS SHAREHOLDER SHAREHOLDER ACTIVISM SHAREHOLDER VALUE SHAREHOLDER VOTES SHAREHOLDERS SOCIETIES SOCIETY STOCK RETURNS SUBSIDIARIES SUBSIDIARY SUSTAINABLE INVESTMENT TAX TRANSACTION TRANSACTION COSTS TRANSITION ECONOMIES TRANSPARENCY TRUST FUND VALUATION VALUATIONS WEAK CORPORATE GOVERNANCE WEAK CORPORATE GOVERNANCE SYSTEMS |
| spellingShingle |
ACCOUNTING ACCOUNTING STANDARDS AGENCY COSTS AGENCY PROBLEM ASSET GROWTH ASSET MANAGEMENT AUDIT COMMITTEE BOARD MEETINGS BOARD MEMBERS BOARDS OF DIRECTORS BONDHOLDERS BRIBERY BUSINESS ETHICS BUSINESS LAWYER CAPITAL MARKET CAPITAL MARKETS CAPITAL RATIO CARBON DISCLOSURE CASH FLOW CEO CEOS CHARTERED ACCOUNTANTS CHECKS CHIEF EXECUTIVES COMPANY LAW COMPARATIVE CORPORATE GOVERNANCE CONFLICTS OF INTEREST CONTROLLING SHAREHOLDER CONTROLLING SHAREHOLDERS CORPORATE BEHAVIOR CORPORATE BOARDS CORPORATE CULTURE CORPORATE FINANCE CORPORATE GOVERNANCE CORPORATE GOVERNANCE CODES CORPORATE GOVERNANCE MECHANISMS CORPORATE GOVERNANCE REFORM CORPORATE GOVERNANCE STANDARDS CORPORATE OWNERSHIP CORPORATE SOCIAL RESPONSIBILITY CORPORATE TRANSPARENCY CORPORATIONS CORRUPT PRACTICES CORRUPTION COUNTRY TO COUNTRY CREDITORS CRITICAL MASS DERIVATIVE DEVELOPING COUNTRIES DIRECTOR INDEPENDENCE DIVERSIFIED PORTFOLIO DOMESTIC COMPANIES DUMMY VARIABLE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET COMPANIES EMERGING MARKET FIRMS EMERGING MARKETS EQUITY INVESTORS EQUITY PRICES EXPROPRIATION FAMILY BUSINESS FAMILY FIRM FAMILY FIRMS FINANCE CORPORATION FINANCIAL CAPITAL FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL MARKETS FINANCIAL STATEMENTS FINANCIAL STUDIES FINANCIAL VOLATILITY FIRM PERFORMANCE FIRM STRUCTURES FIRM-LEVEL CORPORATE GOVERNANCE FIRM-LEVEL GOVERNANCE FRAUD GLOBAL CORPORATE GOVERNANCE GLOBAL ECONOMY GLOBAL GROSS DOMESTIC PRODUCT GLOBAL INVESTOR GLOBAL PRIVATE SECTOR GOOD GOVERNANCE GOVERNANCE ARRANGEMENTS GOVERNANCE CHALLENGE GOVERNANCE INDEXES GOVERNANCE INDICATORS GOVERNANCE ISSUES GOVERNANCE MECHANISM GOVERNANCE MECHANISMS GOVERNANCE PRACTICES GOVERNANCE RESEARCH GROUP COMPANIES GROUP OF INVESTORS GROWTH RATE HOLDING HOLDING COMPANY HUMAN CAPITAL ILLIQUIDITY INCENTIVE STRUCTURES INCOME INDEPENDENT BOARDS INDEPENDENT DIRECTORS INDEPENDENT OVERSIGHT INDIVIDUAL COMPANIES INDIVIDUAL INVESTORS INFORMATION ASYMMETRY INFORMATION FLOWS INSIDER TRADING INSTITUTIONAL FRAMEWORK INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSURERS INTERESTS OF MINORITY SHAREHOLDERS INTERNATIONAL BUSINESS INTERNATIONAL BUSINESS TRANSACTIONS INTERNATIONAL CORPORATE GOVERNANCE INTERNATIONAL FINANCE INTERNATIONAL INVESTORS INVESTIGATION INVESTMENT DECISIONS INVESTMENT POLICIES INVESTOR CONFIDENCE INVESTOR PERSPECTIVE INVESTOR PROTECTION INVESTOR PROTECTIONS INVESTOR RISKS JOURNAL OF CORPORATION LAW JURISDICTIONS LABOR MARKET LABOR MARKETS LAW ENFORCEMENT LEGAL INFRASTRUCTURES LEGAL REGIMES LEGAL SYSTEMS LIEN LIMITED LIQUIDITY LOAN LOCAL INSTITUTIONS MAJORITY SHAREHOLDERS MANAGERS MARKET COMPETITION MARKET DOWNTURNS MARKET GOVERNANCE MARKET PRICE MARKET VALUE MINORITY INTERESTS MINORITY INVESTOR MINORITY INVESTORS MINORITY OWNER MINORITY SHAREHOLDER MINORITY SHAREHOLDERS MONETARY FUND OWNERSHIP CONCENTRATION OWNERSHIP STRUCTURE OWNERSHIP STRUCTURES PARTY POLITICAL ECONOMY POLITICAL INSTITUTIONS POLITICAL INTERFERENCE PORTFOLIO PORTFOLIO HOLDINGS PORTFOLIO INVESTMENT PROXY PROXY VOTING PUBLIC COMPANIES PUBLIC GOVERNANCE PUBLIC OFFICIALS REGULATORS REGULATORY QUALITY REPAYMENT RETURN RETURN ON ASSETS RISK FACTOR RULE OF LAW SALES GROWTH SAVINGS SHAREHOLDER SHAREHOLDER ACTIVISM SHAREHOLDER VALUE SHAREHOLDER VOTES SHAREHOLDERS SOCIETIES SOCIETY STOCK RETURNS SUBSIDIARIES SUBSIDIARY SUSTAINABLE INVESTMENT TAX TRANSACTION TRANSACTION COSTS TRANSITION ECONOMIES TRANSPARENCY TRUST FUND VALUATION VALUATIONS WEAK CORPORATE GOVERNANCE WEAK CORPORATE GOVERNANCE SYSTEMS Ararat, Melsa Dallas, George Corporate Governance in Emerging Markets : Why It Matters to Investors—and What They Can Do About It |
| relation |
Private Sector Opinion; No. 22 |
| description |
What should investors do when scholarly
research on corporate governance in emerging markets does
not provide conclusive evidence on which aspects of
governance matter most across all the emerging markets and
how they affect firm performance? A researcher and a
practitioner team up to offer guidelines and recommendations
that focus on board independence and business group
affiliation. Every day, institutional investors in emerging
markets must make practical decisions on the basis of
incomplete and at times conflicting information. So, it is
critically important that they make the best use of this
imperfect knowledge. Moreover, investors too often enter
emerging markets with misguided perceptions of the
underlying realities. And worse, they may cling to a
conceptual framework of governance that does not allow them
even to consider the searching questions they should be
asking. This Private Sector Opinion, by the authors,
explicitly highlights this problem. The authors identify a
serious gap in research on emerging markets between
high-level cross-country studies, with their inconclusive
findings on good governance indicators at the macro level,
and the separate effort to establish firm-level or
country-specific governance metrics, typically based on what
works 'in the West.' Unfortunately, less than one
percent of the research papers available on corporate
governance focus on emerging markets. |
| format |
Publications & Research :: Brief |
| author |
Ararat, Melsa Dallas, George |
| author_facet |
Ararat, Melsa Dallas, George |
| author_sort |
Ararat, Melsa |
| title |
Corporate Governance in Emerging Markets : Why It Matters to Investors—and What They Can Do About It |
| title_short |
Corporate Governance in Emerging Markets : Why It Matters to Investors—and What They Can Do About It |
| title_full |
Corporate Governance in Emerging Markets : Why It Matters to Investors—and What They Can Do About It |
| title_fullStr |
Corporate Governance in Emerging Markets : Why It Matters to Investors—and What They Can Do About It |
| title_full_unstemmed |
Corporate Governance in Emerging Markets : Why It Matters to Investors—and What They Can Do About It |
| title_sort |
corporate governance in emerging markets : why it matters to investors—and what they can do about it |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2011/01/15107565/corporate-governance-emerging-markets-matters-investors-can http://hdl.handle.net/10986/11071 |
| _version_ |
1764415415372480512 |
| spelling |
okr-10986-110712021-04-23T14:02:53Z Corporate Governance in Emerging Markets : Why It Matters to Investors—and What They Can Do About It Ararat, Melsa Dallas, George ACCOUNTING ACCOUNTING STANDARDS AGENCY COSTS AGENCY PROBLEM ASSET GROWTH ASSET MANAGEMENT AUDIT COMMITTEE BOARD MEETINGS BOARD MEMBERS BOARDS OF DIRECTORS BONDHOLDERS BRIBERY BUSINESS ETHICS BUSINESS LAWYER CAPITAL MARKET CAPITAL MARKETS CAPITAL RATIO CARBON DISCLOSURE CASH FLOW CEO CEOS CHARTERED ACCOUNTANTS CHECKS CHIEF EXECUTIVES COMPANY LAW COMPARATIVE CORPORATE GOVERNANCE CONFLICTS OF INTEREST CONTROLLING SHAREHOLDER CONTROLLING SHAREHOLDERS CORPORATE BEHAVIOR CORPORATE BOARDS CORPORATE CULTURE CORPORATE FINANCE CORPORATE GOVERNANCE CORPORATE GOVERNANCE CODES CORPORATE GOVERNANCE MECHANISMS CORPORATE GOVERNANCE REFORM CORPORATE GOVERNANCE STANDARDS CORPORATE OWNERSHIP CORPORATE SOCIAL RESPONSIBILITY CORPORATE TRANSPARENCY CORPORATIONS CORRUPT PRACTICES CORRUPTION COUNTRY TO COUNTRY CREDITORS CRITICAL MASS DERIVATIVE DEVELOPING COUNTRIES DIRECTOR INDEPENDENCE DIVERSIFIED PORTFOLIO DOMESTIC COMPANIES DUMMY VARIABLE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET COMPANIES EMERGING MARKET FIRMS EMERGING MARKETS EQUITY INVESTORS EQUITY PRICES EXPROPRIATION FAMILY BUSINESS FAMILY FIRM FAMILY FIRMS FINANCE CORPORATION FINANCIAL CAPITAL FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL MARKETS FINANCIAL STATEMENTS FINANCIAL STUDIES FINANCIAL VOLATILITY FIRM PERFORMANCE FIRM STRUCTURES FIRM-LEVEL CORPORATE GOVERNANCE FIRM-LEVEL GOVERNANCE FRAUD GLOBAL CORPORATE GOVERNANCE GLOBAL ECONOMY GLOBAL GROSS DOMESTIC PRODUCT GLOBAL INVESTOR GLOBAL PRIVATE SECTOR GOOD GOVERNANCE GOVERNANCE ARRANGEMENTS GOVERNANCE CHALLENGE GOVERNANCE INDEXES GOVERNANCE INDICATORS GOVERNANCE ISSUES GOVERNANCE MECHANISM GOVERNANCE MECHANISMS GOVERNANCE PRACTICES GOVERNANCE RESEARCH GROUP COMPANIES GROUP OF INVESTORS GROWTH RATE HOLDING HOLDING COMPANY HUMAN CAPITAL ILLIQUIDITY INCENTIVE STRUCTURES INCOME INDEPENDENT BOARDS INDEPENDENT DIRECTORS INDEPENDENT OVERSIGHT INDIVIDUAL COMPANIES INDIVIDUAL INVESTORS INFORMATION ASYMMETRY INFORMATION FLOWS INSIDER TRADING INSTITUTIONAL FRAMEWORK INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSURERS INTERESTS OF MINORITY SHAREHOLDERS INTERNATIONAL BUSINESS INTERNATIONAL BUSINESS TRANSACTIONS INTERNATIONAL CORPORATE GOVERNANCE INTERNATIONAL FINANCE INTERNATIONAL INVESTORS INVESTIGATION INVESTMENT DECISIONS INVESTMENT POLICIES INVESTOR CONFIDENCE INVESTOR PERSPECTIVE INVESTOR PROTECTION INVESTOR PROTECTIONS INVESTOR RISKS JOURNAL OF CORPORATION LAW JURISDICTIONS LABOR MARKET LABOR MARKETS LAW ENFORCEMENT LEGAL INFRASTRUCTURES LEGAL REGIMES LEGAL SYSTEMS LIEN LIMITED LIQUIDITY LOAN LOCAL INSTITUTIONS MAJORITY SHAREHOLDERS MANAGERS MARKET COMPETITION MARKET DOWNTURNS MARKET GOVERNANCE MARKET PRICE MARKET VALUE MINORITY INTERESTS MINORITY INVESTOR MINORITY INVESTORS MINORITY OWNER MINORITY SHAREHOLDER MINORITY SHAREHOLDERS MONETARY FUND OWNERSHIP CONCENTRATION OWNERSHIP STRUCTURE OWNERSHIP STRUCTURES PARTY POLITICAL ECONOMY POLITICAL INSTITUTIONS POLITICAL INTERFERENCE PORTFOLIO PORTFOLIO HOLDINGS PORTFOLIO INVESTMENT PROXY PROXY VOTING PUBLIC COMPANIES PUBLIC GOVERNANCE PUBLIC OFFICIALS REGULATORS REGULATORY QUALITY REPAYMENT RETURN RETURN ON ASSETS RISK FACTOR RULE OF LAW SALES GROWTH SAVINGS SHAREHOLDER SHAREHOLDER ACTIVISM SHAREHOLDER VALUE SHAREHOLDER VOTES SHAREHOLDERS SOCIETIES SOCIETY STOCK RETURNS SUBSIDIARIES SUBSIDIARY SUSTAINABLE INVESTMENT TAX TRANSACTION TRANSACTION COSTS TRANSITION ECONOMIES TRANSPARENCY TRUST FUND VALUATION VALUATIONS WEAK CORPORATE GOVERNANCE WEAK CORPORATE GOVERNANCE SYSTEMS What should investors do when scholarly research on corporate governance in emerging markets does not provide conclusive evidence on which aspects of governance matter most across all the emerging markets and how they affect firm performance? A researcher and a practitioner team up to offer guidelines and recommendations that focus on board independence and business group affiliation. Every day, institutional investors in emerging markets must make practical decisions on the basis of incomplete and at times conflicting information. So, it is critically important that they make the best use of this imperfect knowledge. Moreover, investors too often enter emerging markets with misguided perceptions of the underlying realities. And worse, they may cling to a conceptual framework of governance that does not allow them even to consider the searching questions they should be asking. This Private Sector Opinion, by the authors, explicitly highlights this problem. The authors identify a serious gap in research on emerging markets between high-level cross-country studies, with their inconclusive findings on good governance indicators at the macro level, and the separate effort to establish firm-level or country-specific governance metrics, typically based on what works 'in the West.' Unfortunately, less than one percent of the research papers available on corporate governance focus on emerging markets. 2012-08-13T14:03:30Z 2012-08-13T14:03:30Z 2011-01 http://documents.worldbank.org/curated/en/2011/01/15107565/corporate-governance-emerging-markets-matters-investors-can http://hdl.handle.net/10986/11071 English Private Sector Opinion; No. 22 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research |