Corporate Governance and Development

By C.A.M.F. Claessens. 2006

380 citations recorded by the source corpus.

The literature shows that good corporate governance generally pays for firms, for markets, and for countries. It is associated with a lower cost of capital, higher returns on equity, greater efficiency, and more favorable treatment of all stakeholders, although the direction of causality is not always clear. The law and finance literature has documented the important role of institutions aimed at contractual and legal enforcement, including corporate governance, across countries. Using firm level data, researchers have documented relationships between countries corporate governance frameworks on the one hand and performance, valuation, the cost of capital, and access to external financing on the other. Given the benefits of good corporate governance, firms and countries should voluntarily reform more. Resistance by entrenched owners and managers at the firm level and political economy factors at the level of markets and countries partly explain why they do not.

Subfields: Accounting

View Paper: https://www.semanticscholar.org/paper/285ba7c0284f724ba819cffd57f74e39c82c8abb

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In Accounting

1. Matteo Pellegrini
2. Wafik Grais
3. G. Munisi
4. M. Habbash
5. Trond Randøy
6. Assem Safieddine
7. R. Grassa

Citations in the corpus

• Impact of corporate governance on CSR disclosure (2020, neutral): “Corporate governance aims to keep an equilibrium between the firm’s individual and communal goals and between economic and social goals (Claessens 2006).”
• Corporate Governance and Regulation: Can There Be Too Much of a Good Thing? (2007, neutral): “Stijn Claessens is since 2004 Senior Adviser in the Financial and Private Sector Vice-Presidency of the World Bank. He is also a Professor of International Finance Policy at the University of Amsterdam where he taught for three years (20012004). Mr. Claessens, a Dutch national, holds a Ph.D. in busi”
• Corporate governance and company performance across Sub-Saharan African countries (2013, background): “Good corporate governance practices, both at the country and the company level, are regarded as important factors for attracting domestic investment and ensuring greater inflows of foreign direct investment (Claessens, 2006).”
• Does Corporate Transparency Contribute to Efficient Resource Allocation (2009, neutral): “Finally, reforms such as deregulation are increasingly exposing firms to market forces and risks (Claessens 2006).”
• Corporate governance and impact on bank performance (2013, background): “It also increases access to external financing by firms, lowers cost of capital and increases operational performance [5].”
• Finance and inequality: The case of India (2010, neutral): “Furthermore, the presence of weak institutional environments in many liberalizing markets has allowed insiders to expropriate the interests of minority shareholders (Claessens et al., 2002; Claessens, 2006).”
• Corporate Governance in Institutions Offering Islamic Financial Services: Issues and Options (2006, positive): “In a review of the impact of corporate governance on economic development, Claessens (2003) identifies four areas in which empirical evidence points to the positive effects of good CG on the performance of firms.”
• Financial Development and Income Inequality: Is There Any Financial Kuznets Curve in Iran? (2014, neutral): “Claessens (2006) and Perotti (1996) provided another reason due to which poor people are unable to access the benefit of financial development.”
• Corporate governance and corporate social responsibility disclosure: evidence from Saudi Arabia (2016, background): “For example, Claessens (2003, p. 7) states, “In its broadest sense, CG is concerned with holding a balance between economic and social goals and between individual and communal goals”.”