Self-Dealing : Sneaking Corporate Value through the Back Door
Self-dealing, prevalent in emerging markets, often harms minority shareholders. The related-party transaction is one common technique, especially in markets with weak law enforcement. Beyond self-dealing, other methods of expropriation, such as...
| Main Authors: | , |
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| Format: | Viewpoint |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2006/09/7123714/self-dealing-sneaking-corporate-value-through-back-door http://hdl.handle.net/10986/11176 |
| Summary: | Self-dealing, prevalent in emerging
markets, often harms minority shareholders. The
related-party transaction is one common technique,
especially in markets with weak law enforcement. Beyond
self-dealing, other methods of expropriation, such as
insider trading and dilution of share value, can also harm
minorities. Countries can use several tactics to combat
self-dealing, including improving disclosure, strengthening
regulatory enforcement, and increasing public awareness of
good governance and investor rights. While not always
successful, these measures often go a long way toward
protecting minority investors. |
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