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 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.

Bibliographic Details

Main Author:	Dyck, Alexander
Format:	Journal Article biblioteca
Language:	English en_US
Published:	Washington, DC: World Bank 2001-04
Subjects:	ACCESS TO INFORMATION, ACCOUNTABILITY, ACCOUNTABILITY MECHANISMS, ACCOUNTING, ACCOUNTING PRACTICES, AGENCY PROBLEMS, ASSET SALES, AUCTIONS, AUDITING, AUTHORITY, BANKING SYSTEMS, BANKRUPTCY, BANKRUPTCY LAWS, BANKRUPTCY PROCEEDINGS, BANKS, BID, BOARDS OF DIRECTORS, BOND, BROKERAGE, BROKERAGE FIRMS, BROKERAGE HOUSES, BUSINESS ENVIRONMENT, BUSINESS LICENSES, CASH FLOW, CIVIL LAW, COMMON LAW, CONFLICTS OF INTEREST, CONTRACT ENFORCEMENT, CONTRACT REPUDIATION, CORPORATE GOVERNANCE, CORPORATE LAWS, CORPORATE PERFORMANCE, CORRUPTION, CREDIBILITY, CREDIT-RATING AGENCIES, CREDITORS, CURRENCY, CUSTOMER BASE, DEBT, DECISION MAKING, DECISION-MAKING, DECISION-MAKING POWER, DEPOSITORY, DEVELOPING COUNTRIES, DEVELOPING ECONOMIES, DISCLOSURE LAWS, DIVIDEND, DIVIDEND POLICIES, DIVIDENDS, DOMESTIC EXCHANGES, DOMESTIC INVESTOR, ECONOMIC POWER, EFFECTIVE GOVERNANCE, EMERGING MARKETS, ENTREPRENEURSHIP, EQUITY INVESTORS, EQUITY MARKETS, EQUITY RETURNS, EXCHANGE COMMISSION, EXTERNAL FINANCE, FEDERAL GOVERNMENT, FINANCIAL CRISIS, FINANCIAL INFORMATION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARIES, FINANCIAL PERFORMANCE, FINANCIAL RETURNS, FINANCIAL SYSTEM, FINANCIER, FIRM ASSETS, FLOW OF INFORMATION, FOREIGN EXCHANGE, FOREIGN EXCHANGES, FOREIGN FIRMS, FOREIGN INVESTOR, FOREIGN INVESTORS, FOREIGN OWNERSHIP, FOREIGN STOCK, FORMAL ECONOMY, FORMAL INSTITUTIONS, FUND MANAGERS, FUTURE GROWTH, FUTURE PROSPECTS, GOVERNANCE MEASURES, GOVERNANCE MECHANISM, GOVERNANCE MECHANISMS, GOVERNMENT OFFICIALS, GOVERNMENT REGULATIONS, GOVERNMENT SERVICES, GROSS DOMESTIC PRODUCT, GROWTH RATES, HEDGE FUNDS, HOLDING, HOME COUNTRIES, HOME COUNTRY, INCOME, INCOMES, INFORMATION DISCLOSURE, INFORMATION FLOWS, INSIDER TRADING, INSTITUTIONAL DEVELOPMENT, INSTITUTIONAL ENVIRONMENT, INSTITUTIONAL INVESTORS, INSTITUTIONAL STRUCTURE, INSURANCE, INTERNATIONAL BANK, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKETS, INTERNATIONAL MARKETS, INTERNATIONAL STANDARD, INVESTING, INVESTMENT OPPORTUNITIES, INVESTMENT PRIVATIZATION, INVESTMENT PROJECTS, INVESTOR PROTECTION, INVESTOR PROTECTIONS, ISSUERS OF SECURITIES, JUDICIAL SYSTEM, JUDICIARY, JURISDICTIONS, LEGAL ENVIRONMENTS, LEGAL FRAMEWORKS, LEGAL INSTITUTIONS, LEGAL MECHANISMS, LEGAL PROTECTION, LEGAL PROTECTIONS, LEGAL TRADITION, LEGISLATION, LIQUIDITY, LOAN, LOAN CLASSIFICATION, LONG-TERM FINANCE, MAJORITY SHAREHOLDERS, MARKET CAPITALIZATION, MARKET DEVELOPMENT, MARKET PRICES, MINORITY INVESTORS, MINORITY SHAREHOLDERS, MONETARY FUND, MOTIVATIONS, NATIONAL BANK, OPPORTUNITY COST, OUTSIDE INVESTORS, OWNERSHIP STRUCTURE, OWNERSHIP STRUCTURES, PENALTIES, PENSION, PENSION FUNDS, POLITICAL ECONOMY, PORTFOLIOS, POTENTIAL INVESTMENT, PREFERENTIAL ACCESS, PRIVATE CAPITAL, PRIVATE CAPITAL FLOWS, PRIVATE ENTITIES, PRIVATE INVESTORS, PRIVATE OWNERSHIP, PRIVATE PARTIES, PRIVATE PENSION, PRIVATE SALES, PRIVATE SECTOR DEVELOPMENT, PRIVATIZATION, PRIVATIZATIONS, PROPERTY RIGHTS, PUBLIC INSTITUTIONS, RATING AGENCIES, REGULATORS, REGULATORY AGENCIES, REGULATORY AUTHORITIES, REGULATORY BODIES, REGULATORY INTERVENTIONS, REINVESTMENT, REINVESTMENT RATES, REPRESENTATIVES, REPUBLICS, REPUTATION, REPUTATIONS, RESOURCE ALLOCATION, RISK OF CONTRACT REPUDIATION, RISK OF EXPROPRIATION, RULE OF LAW, SECURITIES, SECURITIES EXCHANGES, SECURITIES MARKETS, SECURITIES REGULATOR, SELF-REGULATION, SEPARATION OF POWERS, SHARE PRICES, SHAREHOLDER, SHAREHOLDER RIGHTS, SHORT-TERM CAPITAL, SOCIAL WELFARE, SOCIALISM, STATE OWNERSHIP, STATE PROPERTY, STATE REVENUES, STOCK EXCHANGE, STOCK EXCHANGES, STOCK MARKETS, STRATEGIC INVESTOR, TAX, TAX PAYMENTS, TRADE CREDITS, TRANSACTION, TRANSACTION COSTS, TRANSFER OF TITLE, TRANSITION COUNTRIES, TRANSITION ECONOMIES, TRUSTEE, VALUATION, VENTURE CAPITALISTS, VOTING, VOUCHER PRIVATIZATION, VOUCHER PRIVATIZATIONS, WAGES,
Online Access:	http://documents.worldbank.org/curated/en/2001/03/17580028/privatization-corporate-governance-principles-evidence-future-challenges http://hdl.handle.net/10986/17129
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