Click here for search results
Corporate governance, investor protection, and performance in emerging markets, Volume 1
Author:Klapper, Leora F.; Love, Inessa; Date Stored:2002/05/15
Document Date:2002/04/30Document Type:Policy Research Working Paper
SubTopics:International Terrorism & Counterterrorism; Municipal Financial Management; Decentralization; Governance Indicators; National Governance; Banks & Banking Reform; Financial Crisis Management & Restructuring; Economic Policy, Institutions and GovernanceLanguage:English
Major Sector:Financial SectorReport Number:WPS2818
Sub Sectors:Other FinanceCollection Title:Policy, Research working paper ; no. WPS 2818
Volume No:1  

Summary: Recent research studying the link between law, and finance has concentrated on country-level investor protection measures, and focused on differences in legal systems across countries, and legal families. The authors extend this literature, and provide a study of firm-level corporate governance practices across emerging markets, and a greater understanding of the environments under which corporate governance matters more. Their empirical tests show that better corporate governance is highly correlated with better operating performance, and market valuation. More important, the authors provide evidence showing that firm-level corporate governance provisions, matter more in countries with weak legal environments. These results suggest that firms can partially compensate for ineffective laws, and enforcement by establishing good governance, and providing credible investor protection. The authors' tests also show that firm-level governance, and performance is lower in countries with weak legal environments, suggesting that improving the legal system, should remain a priority for policymakers.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 38 pagesOfficial version*2.66 (approx.)
TextText version**
How To Order
Light-Weight Documents
Lighter (less MB) documents which may or may not be the final, official version
File TypeDescriptionFile Size (mb)
PDF 40 pagesWPS28180.11

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page:

© 2016 The World Bank Group, All Rights Reserved. Legal