Corporate Governance, Value Creation and Growth
The Bridge between Finance and Enterprise
This publication examines the role of corporate governance arrangements in providing the right incentives to contribute to the value creation process within the private enterprises and the implications of the differences in ownership structures on corporate governance practices and frameworks. It also addresses these global changes from emerging markets perspective and the distinguishing features of these economies that shape their capital markets, corporate structures and corporate governance landscape.
This publication is an important reminder that all those corporate governance rules, regulations and practices that we discuss are not a goal in themselves. They are supposed to be means to a greater end. Be it minority rights, mandatory bids, or independent directors, the rules and regulations that we put in place should serve a purpose. And it is against this purpose and these objectives that the quality of any corporate governance system should be evaluated. So, we need to find a benchmark against which we can assess new regulations and evaluate existing ones.
Foreword
Credible and well functioning capital markets are a prerequisite for the development and sustainability of a vibrant private enterprise sector. And the prime policy objective is to make sure that corporations get access to the capital they need for innovation, job creation and growth. For this to happen markets need to have a robust framework of corporate governance rules and regulations that provides investors with confidence in the system and entrepreneurs with the incentives to develop their businesses. To ensure an efficient link between finance and enterprise is particularly important in the aftermath of the financial crisis when policy makers are looking for reforms to unleash innovation and productivity for sustainable growth. It is also essential for many developing and emerging markets where new generations of enterprises should be given the opportunity to access external capital, which will make it possible for them to realise their full potential and contribution to economic growth. However, when shaping the framework we must also take into account important structural developments in the financial and corporate sectors and make sure that rules and regulations are well adapted to current and future conditions. To address these issues, the OECD Corporate Governance Committee and the Capital Markets Board of Turkey organised the meeting Corporate Governance, Innovation and Value Creation on 1 February 2012 in Istanbul.