The Changing Corporate Governance Paradigm: Implications for Transition and Developing Countries

Erik Berglof and Ernst-Ludwig von Thadden

Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie

Abstract: The rapidly growing literature studying the relationship between legal origin, investor protection, and finance has stimulated an important debate in academic circles. It has also generated a number of applied research projects and strong policy statements. This paper discusses the implications, in particular for developing and transition countries, from this literature. We conclude that its focus on the plight of small investors is too narrow when applied to these countries. We argue that this group is unlikely to play an important role in most developing and transition countries. External investors may still be crucial, but they are more likely to come in as strategic investors or creditors. The paper also proposes a broader paradigm including other stakeholders and mechanisms of governance in order to better understand the problems facing these countries and generate policy implications that compensate for the weaknesses of capital markets.

Keywords: corporate governance; corporate law; economic transition; economic development (search for similar items in EconPapers)
JEL-codes: D23 G32 G38 K22 O17 (search for similar items in EconPapers)
Pages: 29 pages
Date: 1999-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (67)

Published in Annual World Bank Conference on Development Economics 1999, pp. 135-162

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Related works:
Working Paper: The Changing Corporate Governance Paradigm: Implications for Transition and Developing Countries (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:lau:crdeep:9912

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