Corporate Governance, Investor Protection, and Performance in Emerging Markets
Recent research studying the link between law, and finance has concentrated on country-level investor protection measures, and focused on differences in legal systems across countries, and legal families. The authors extend this literature, and pro...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/04/1758949/corporate-governance-investor-protection-performance-emerging-markets http://hdl.handle.net/10986/14319 |
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okr-10986-143192021-04-23T14:03:20Z Corporate Governance, Investor Protection, and Performance in Emerging Markets Klapper, Leora F. Love, Inessa ACCOUNTABILITY ACCOUNTING AMERICAN ECONOMIC REVIEW AVERAGE PERFORMANCE BOOK VALUE CAPITAL MARKETS CASH FLOWS CORPORATE GOVERNANCE CORRELATION WITH GOVERNANCE CORRUPTION COST OF CAPITAL COUNTRY AVERAGE COUNTRY COMPARISON COUNTRY RISK GUIDE CREDIBLE COMMITMENT DEGREE OF AGENCY DETERMINANTS OF GOVERNANCE DISCLOSURE DIVIDEND PAYOUT ECONOMIC DEVELOPMENT ECONOMIC GROWTH EFFECT OF GOVERNANCE EMERGING MARKETS EXCHANGE OF IDEAS EXTERNAL FINANCE EXTERNAL FINANCING GOOD GOVERNANCE GOVERNANCE DATA GOVERNANCE INDEX GOVERNANCE INDICATORS GOVERNANCE INDICES GOVERNANCE MEASURE GROWTH RATE GROWTH RATES IMPROVEMENT IN GOVERNANCE IMPROVEMENTS IN GOVERNANCE INCOME INSTITUTIONAL ENVIRONMENT INTANGIBLE ASSETS INVESTOR PROTECTION JUDICIAL REFORM JUDICIAL SYSTEM LAWS LEGAL INFRASTRUCTURE LEGAL ORIGINS LEGAL PROTECTION LEGAL SYSTEM LEGAL SYSTEMS LEGALITY MARKET VALUATION MARKET VALUE PERFORMANCE MEASURES POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY POLITICIANS POOR GOVERNANCE PRODUCTIVITY RETURN ON ASSETS RETURN ON EQUITY RULE OF LAW SHAREHOLDERS SHAREHOLDERS RIGHTS TRADING TRANSPARENCY VOLATILITY CORPORATE GOVERNANCE INVESTOR PROTECTION EMERGING ECONOMIES MARKET ACCESS LEGAL FRAMEWORK LAW ENFORCEMENT FINANCIAL LEVERAGE BUSINESS ENVIRONMENT MARKET VALUE LEGAL INSTRUMENTS INVESTOR CONFIDENCE PERFORMANCE INDICATORS Recent research studying the link between law, and finance has concentrated on country-level investor protection measures, and focused on differences in legal systems across countries, and legal families. The authors extend this literature, and provide a study of firm-level corporate governance practices across emerging markets, and a greater understanding of the environments under which corporate governance matters more. Their empirical tests show that better corporate governance is highly correlated with better operating performance, and market valuation. More important, the authors provide evidence showing that firm-level corporate governance provisions, matter more in countries with weak legal environments. These results suggest that firms can partially compensate for ineffective laws, and enforcement by establishing good governance, and providing credible investor protection. The authors' tests also show that firm-level governance, and performance is lower in countries with weak legal environments, suggesting that improving the legal system, should remain a priority for policymakers. 2013-07-01T19:28:11Z 2013-07-01T19:28:11Z 2002-04 http://documents.worldbank.org/curated/en/2002/04/1758949/corporate-governance-investor-protection-performance-emerging-markets http://hdl.handle.net/10986/14319 English en_US Policy Research Working Paper;No.2818 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTABILITY ACCOUNTING AMERICAN ECONOMIC REVIEW AVERAGE PERFORMANCE BOOK VALUE CAPITAL MARKETS CASH FLOWS CORPORATE GOVERNANCE CORRELATION WITH GOVERNANCE CORRUPTION COST OF CAPITAL COUNTRY AVERAGE COUNTRY COMPARISON COUNTRY RISK GUIDE CREDIBLE COMMITMENT DEGREE OF AGENCY DETERMINANTS OF GOVERNANCE DISCLOSURE DIVIDEND PAYOUT ECONOMIC DEVELOPMENT ECONOMIC GROWTH EFFECT OF GOVERNANCE EMERGING MARKETS EXCHANGE OF IDEAS EXTERNAL FINANCE EXTERNAL FINANCING GOOD GOVERNANCE GOVERNANCE DATA GOVERNANCE INDEX GOVERNANCE INDICATORS GOVERNANCE INDICES GOVERNANCE MEASURE GROWTH RATE GROWTH RATES IMPROVEMENT IN GOVERNANCE IMPROVEMENTS IN GOVERNANCE INCOME INSTITUTIONAL ENVIRONMENT INTANGIBLE ASSETS INVESTOR PROTECTION JUDICIAL REFORM JUDICIAL SYSTEM LAWS LEGAL INFRASTRUCTURE LEGAL ORIGINS LEGAL PROTECTION LEGAL SYSTEM LEGAL SYSTEMS LEGALITY MARKET VALUATION MARKET VALUE PERFORMANCE MEASURES POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY POLITICIANS POOR GOVERNANCE PRODUCTIVITY RETURN ON ASSETS RETURN ON EQUITY RULE OF LAW SHAREHOLDERS SHAREHOLDERS RIGHTS TRADING TRANSPARENCY VOLATILITY CORPORATE GOVERNANCE INVESTOR PROTECTION EMERGING ECONOMIES MARKET ACCESS LEGAL FRAMEWORK LAW ENFORCEMENT FINANCIAL LEVERAGE BUSINESS ENVIRONMENT MARKET VALUE LEGAL INSTRUMENTS INVESTOR CONFIDENCE PERFORMANCE INDICATORS |
| spellingShingle |
ACCOUNTABILITY ACCOUNTING AMERICAN ECONOMIC REVIEW AVERAGE PERFORMANCE BOOK VALUE CAPITAL MARKETS CASH FLOWS CORPORATE GOVERNANCE CORRELATION WITH GOVERNANCE CORRUPTION COST OF CAPITAL COUNTRY AVERAGE COUNTRY COMPARISON COUNTRY RISK GUIDE CREDIBLE COMMITMENT DEGREE OF AGENCY DETERMINANTS OF GOVERNANCE DISCLOSURE DIVIDEND PAYOUT ECONOMIC DEVELOPMENT ECONOMIC GROWTH EFFECT OF GOVERNANCE EMERGING MARKETS EXCHANGE OF IDEAS EXTERNAL FINANCE EXTERNAL FINANCING GOOD GOVERNANCE GOVERNANCE DATA GOVERNANCE INDEX GOVERNANCE INDICATORS GOVERNANCE INDICES GOVERNANCE MEASURE GROWTH RATE GROWTH RATES IMPROVEMENT IN GOVERNANCE IMPROVEMENTS IN GOVERNANCE INCOME INSTITUTIONAL ENVIRONMENT INTANGIBLE ASSETS INVESTOR PROTECTION JUDICIAL REFORM JUDICIAL SYSTEM LAWS LEGAL INFRASTRUCTURE LEGAL ORIGINS LEGAL PROTECTION LEGAL SYSTEM LEGAL SYSTEMS LEGALITY MARKET VALUATION MARKET VALUE PERFORMANCE MEASURES POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY POLITICIANS POOR GOVERNANCE PRODUCTIVITY RETURN ON ASSETS RETURN ON EQUITY RULE OF LAW SHAREHOLDERS SHAREHOLDERS RIGHTS TRADING TRANSPARENCY VOLATILITY CORPORATE GOVERNANCE INVESTOR PROTECTION EMERGING ECONOMIES MARKET ACCESS LEGAL FRAMEWORK LAW ENFORCEMENT FINANCIAL LEVERAGE BUSINESS ENVIRONMENT MARKET VALUE LEGAL INSTRUMENTS INVESTOR CONFIDENCE PERFORMANCE INDICATORS Klapper, Leora F. Love, Inessa Corporate Governance, Investor Protection, and Performance in Emerging Markets |
| relation |
Policy Research Working Paper;No.2818 |
| description |
Recent research studying the link
between law, and finance has concentrated on country-level
investor protection measures, and focused on differences in
legal systems across countries, and legal families. The
authors extend this literature, and provide a study of
firm-level corporate governance practices across emerging
markets, and a greater understanding of the environments
under which corporate governance matters more. Their
empirical tests show that better corporate governance is
highly correlated with better operating performance, and
market valuation. More important, the authors provide
evidence showing that firm-level corporate governance
provisions, matter more in countries with weak legal
environments. These results suggest that firms can partially
compensate for ineffective laws, and enforcement by
establishing good governance, and providing credible
investor protection. The authors' tests also show that
firm-level governance, and performance is lower in countries
with weak legal environments, suggesting that improving the
legal system, should remain a priority for policymakers. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Klapper, Leora F. Love, Inessa |
| author_facet |
Klapper, Leora F. Love, Inessa |
| author_sort |
Klapper, Leora F. |
| title |
Corporate Governance, Investor Protection, and Performance in Emerging Markets |
| title_short |
Corporate Governance, Investor Protection, and Performance in Emerging Markets |
| title_full |
Corporate Governance, Investor Protection, and Performance in Emerging Markets |
| title_fullStr |
Corporate Governance, Investor Protection, and Performance in Emerging Markets |
| title_full_unstemmed |
Corporate Governance, Investor Protection, and Performance in Emerging Markets |
| title_sort |
corporate governance, investor protection, and performance in emerging markets |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2002/04/1758949/corporate-governance-investor-protection-performance-emerging-markets http://hdl.handle.net/10986/14319 |
| _version_ |
1764429819053867008 |