Privatization and Corporate Governance : Principles, Evidence, and Future Challenges
Unless developing countries embrace a corporate governance perspective, privatization is unlikely to provide the benefits of improved performance with accountability. This article introduces the concept of governance chains that can constrain the g...
| Main Author: | |
|---|---|
| Format: | Journal Article |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2001/03/17580028/privatization-corporate-governance-principles-evidence-future-challenges http://hdl.handle.net/10986/17129 |
| Summary: | Unless developing countries embrace a
corporate governance perspective, privatization is unlikely
to provide the benefits of improved performance with
accountability. This article introduces the concept of
governance chains that can constrain the grabbing hands of
public and private actors by providing information and
accountability mechanisms to help investors monitor
managers. Empirical data on established firms from 49
countries provide estimates of the relative importance and
strength of private and formal chains of governance. The
framework and empirical benchmarks help explain the outcomes
of past privatizations and suggest certain steps that
governments can pursue to be sure to get the most out of
future privatization activity. |
|---|