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The Future of Corporate Governance in Capital Markets Following the COVID-19 Crisis

image of The Future of Corporate Governance in Capital Markets Following the COVID-19 Crisis

This report provides an evidence-based overview of developments in capital markets globally leading up to the COVID-19 crisis. It then documents the impact of the crisis on the use of capital markets and the introduction of temporary corporate governance measures. Although the structural effects of the crisis on capital markets and its interplay with corporate governance remain to be fully understood, this report presents trends that can be used to shape policies that will support the recovery and formulates key policy messages that will guide the upcoming review of the G20/OECD Principles of Corporate Governance.

The report emphasises that the road to recovery will require well-functioning capital markets that can allocate substantial financial resources for long-term investments. It also highlights the need to adapt corporate governance rules and practices to the post-COVID-19 reality, particularly in areas such as increased ownership concentration; environmental, social and governance (ESG) risk management; digitalisation; insolvency; audit quality and creditor rights.

English

Executive summary

This report presents indicators and analysis of capital structures, corporate performance, the use of market‑based financing, corporate ownership structures and payout policies over the last two decades. It reviews regulatory and financial support measures related to the COVID‑19 crisis in the areas of corporate governance and corporate finance. It then presents key indicators relating to the non‑financial corporate sector’s use of public equity and corporate bond markets during 2020, and reviews central bank policies related to the corporate bond markets. Using an analysis of structural weaknesses in both the public equity and corporate bond markets worldwide, the report focuses on the role that capital markets can play on the road to recovery and resilience. It also identifies key corporate governance policy issues that may require further attention in the post-crisis era.

English

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