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.
One Size for All? – The European Union Experience
This chapter analyses the harmonisation of national company laws and corporate governance rules in the EU countries. The harmonisation of national rules has both advantages and disadvantages, however ignoring differences in company ownership structures among countries runs the risk of diluting control and hindering an active ownership function within a firm. To address the risks related to harmonisation in the EU three issues are examined; 1) the varying characteristics of shares, such as voting rights, 2) controlling owners role in composition, competence and working methods of the board, and 3) market for corporate control.