Harabi, Najib (2007): State of Corporate Governance in Arab Countries: An Overview.
Download (254Kb) | Preview
The purpose of this paper is to assess the state of corporate governance as a major factor affecting the growth performance of the private sector in MENA countries. For this purpose both country-specific assessments, carried out by World Bank-IMF teams (so-called ROSC’s assessments) and focus-group discussions that took place in four regional conferences have been synthesized. Strengths and weaknesses of corporate governance in selected Arab countries have been highlighted. One major key finding is that the legal and regulatory frameworks of the assessed Arab countries are largely compliant with the OECD Principles of corporate governance. However, practices are not. The difficulty of the assessments is to reflect properly the discrepancies between the letter of the law and compliance. It should be emphasized that the World Bank-IMF assessments focus on listed companies. No-listed firms, especially SME, family-owned firms and State-owned enterprises that make up to 98% of all firms, are not subject to assessments.
Another key finding that emerged from our reviewing of the regional conferences on corporate governance is that corporate governance issues have not been ignored in public debates in the MENA region. Practitioners from capital markets, banks, public and private sector representatives and other civil society groups have accepted the need to address corporate governance reforms as one of the crucial topics affecting the economic growth and development of firms, industries and whole economies in their region. Several meetings and conferences at the national and regional level have taken place. Appropriate and up-to-date recommendations regarding corporate governance reform in the MENA region have been adopted in those events. It is now up to the decision makers at all levels to implement those recommendations
|Item Type:||MPRA Paper|
|Institution:||University of Applied Sciences, Northwestern Switzerland|
|Original Title:||State of Corporate Governance in Arab Countries: An Overview|
|Keywords:||Corporate Governance; Governance; state and business; business regulations; corporate finance; economic development; Arab countries; Middle East and North Africa|
|Subjects:||G - Financial Economics > G3 - Corporate Finance and Governance
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
G - Financial Economics > G3 - Corporate Finance and Governance > G38 - Government Policy and Regulation
|Depositing User:||Najib Harabi|
|Date Deposited:||22. Aug 2007|
|Last Modified:||14. Feb 2013 05:27|
Abdel-Fadil, M. (2001), “The Microeconomics of Growth in the MNA Region (1970-2000)”, paper prepared for the Global Development Network (GDN). Washington D.C.
Becht, M., Bolton, P. and A. Roeell (2003), “Corporate Governance and Control”, in G. Constantidines, M. Harris and R. Stultz (eds.) Handbook of the Economics of Finance. Amsterdam: North-Holland.
Beck, T., Demirguc-Kunt, A., V. Maksimovic V. (2002), “Financial and Legal Constraints to Firm Growth: Does Size Matter? World Bank Working Paper 2784. Washington D.C.
Berglof, E. and S. Claessens (2003), “Enforcement and Corporate Governance”. Draft Discussion Paper, prepared for the Global Corporate Governance Forum on June 19, 2003.
Claessens, S. (2003), “Corporate Governance and Development: Review of the Literature and Outstanding Research Issues”, Paper presented at the Global Governance Forum Donors Meeting, The Hague, The Netherlands, March 13th, 2003.
Dyck, A. and L. Zingales (2002), “The Corporate Governance Role of the Media”, in: R. Islam (ed.), The Right to Tell: The Role of Mass Media in Economic Development., Washington: The World Bank.
Fremond, O., M. Capaul (2002), “The State of Corporate Governance: Experience from Country Assessments”. World Bank Policy Research Working Paper 2858. June 2002.
Center for International Private Enterprise (CIPE)/ Global Corporate Governance Forum (2003), “Corporate Governance in Morocco, Egypt, Lebanon and Jordan. Washington D.C.: CIPE (October 2003).
Center for International Private Enterprise (CIPE) (2005), Regional Corporate Governance Forum. Private Sector Consultative Meeting. Conference Report. Amman, Jordan. Washington D.C.: CIPE.
Gompers, P.A. J. Ishii and A. Metrick 2001), “Corporate Governance and Equity Prices, NBER Working Paper No 8449, Cambridge (Mass.)
Klapper, L.O., I. Love (2002), “Corporate Governance, Investor Protection, and Performance in Emerging Markets”, World Bank Policy Research Paper 2818. Washington DC: World Bank.
La Porta, R, Lopez-de-Silanes, F and A. Shleifer , and R.Vishny (1997), “Legal Determinants of External Finance”, Journal of Finance, 52:3 pp.1131-50.
La Porta, R, Lopez-de-Silanes, F and A. Shleifer (1999), “Corporate Ownership Around the World”, The Journal of Finance, 2:471-517.
La Porta, R, Lopez-de-Silanes, F and A. Shleifer (LLSS) (1998), “Law and Finance”, The Journal of Political Economy, 106:1113-1155.
Oman,C.,P.(2001), “Corporate Governance and National Development”, OECD Development Center, Technical Papers No. 180. Paris
Rajan, R. and L. Zingales (1998), “Which Capitalism? Lessons from the East Asian Crisis”, Journal of Applied Corporate Finance, 11:40-48.
Saidi, N. (2004), Corporate Governance in MENA Countries – Improving Transparency and Disclosure. The Second Middle East and North Africa Regional Corporate Governance Forum. Beirut, Lebanon, June 3-5.
World Bank (2003), Better Governance for Development in the Middle East and North Africa. Enhancing Inclusiveness and Accountability. MNA Development Report. Washington DC.
World Bank (2003), Trade, Investment, and Development in the Middle East and North Africa. Engaging with the World. MNA Development Report. Washington DC. World Bank (2003), Unlocking the Employment Potential in the Middle East and North Africa. Toward a New Social Contract . MNA Development Report. Washington D.C.
World Bank/ IMF (2003), Report on the Observance of Standards and Codes (ROSC): Corporate Governance Country Assessment Arab Republic of Egypt. Washington D.C.: World Bank.
World Bank / IMF (2001 & 2003), Rapport sue La Conformité aux Normes et Codes (ROSC): Evaluation de La Gouvernance d’Entreprise du Royaume du Maroc. Washington D.C.: World Bank .
World Bank/ IMF (2004), Report on the Observance of Standards and Codes (ROSC): Corporate Governance Country Assessment Jordan. Washington D.C.: World Bank.