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.
The implications of COVID-19 for the corporate sector and emerging policy issues
This chapter focuses on potential long-term implications of the COVID-19 pandemic on corporate governance and capital markets more generally. It discusses a number of structural weaknesses in both the stock market ecosystem and corporate bond markets. This provides the basis for a discussion about the role that capital markets can and should play in the post-crisis recovery. Based on this, and drawing from the findings in previous chapters, it identifies a range of corporate governance policy issues that may need to be addressed as the crisis subsides. This is followed by an analysis of insolvency systems across countries and out-of-court restructuring practices in corporate bond markets.
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