OECD Development Centre Policy Briefs

2077-1681 (online)
Hide / Show Abstract
The OECD Development Centre links OECD members with developing and emerging economies and fosters debate and discussion to seek creative policy solutions to emerging global issues and development challenges. OECD Development Centre Policy Briefs summarise conclusions reached for policy makers.
Also available in French

Corporate Governance in Developing, Transition and Emerging-Market Economies You or your institution have access to this content

Click to Access: 
  • PDF
  • http://www.keepeek.com/Digital-Asset-Management/oecd/development/corporate-governance-in-developing-transition-and-emerging-market-economies_604227826337
  • READ
Charles Oman1, Steven Fries2, Willem Buiter2
Author Affiliations
  • 1: OECD, France

  • 2: European Bank for Reconstruction and Development, United Kingdom

24 Feb 2004
Bibliographic information

Hide / Show Abstract

• Sound national systems of corporate governance are essential for all countries, including the poorest, to reap the benefits of globalisation. • “Corporate governance” comprises the institutions that govern the relationship between people who manage corporations and all others who invest resources in them. • The quality of local corporate governance critically affects a country’s ability to achieve sustained real productivity growth and the success of its long-term development efforts. • Pyramidal corporate-ownership structures, cross shareholdings and multiple share classes are widely used by corporate insiders in the developing world to extract corporate-control rents, exploit other investors and resist pressures to improve corporate governance. • The power of corporate insiders and their close relationship with those who exercise political power mean that sound corporate governance requires sound political governance, and vice versa.
Also available in French
Visit the OECD web site