Singh, Ajit (2003): Corporate governance, the big business groups and the G-7 reform agenda: A critical analysis. Published in:
Download (209kB) | Preview
Since the Asian crises which began in Thailand in summer of 1997, issues of corporate governance and corporate organisation in emerging markets have acquired an international dimension. They constitute an important part of the reform agenda of G-7 countries in their plans to institute a new international financial architecture which would forestall future crises. The central G-7 argument is that the proposed reforms of the corporate and financial systems of developing countries are essential to make the global markets function properly. The implicit suggestion is that the recent financial crises in these countries were not the outcome of market failures but rather the failure of developing country governments and institutions which did not provide accurate and adequate information to markets, as well as imposed other distortions on the latter. This thesis is not universally accepted by economists, but nonetheless, such reforms were pressed on the crisis-affected Asian countries as part of IMF conditionality and are now being advocated for other developing countries.
This paper concentrates on the reform of corporate systems in emerging markets, an issue which has not received as much public and academic attention as the reform of the financial sector in these countries. The reform of the non-financial corporate sector necessarily involves issues of corporate governance and organisation including the role of the big business groups. The latter, as we shall see, are ubiquitous in emerging countries.
|Item Type:||MPRA Paper|
|Original Title:||Corporate governance, the big business groups and the G-7 reform agenda: A critical analysis|
|Keywords:||corporate governance; G-7; emerging markets; asian crisis|
|Subjects:||A - General Economics and Teaching > A1 - General Economics
O - Economic Development, Innovation, 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
|Depositing User:||Ajit Singh|
|Date Deposited:||28. Aug 2010 16:50|
|Last Modified:||17. Feb 2013 19:19|
Allen, F. and Gale, D.,(2001) Comparing Financial Systems, The MIT Press, London, England
Amsden A (1989) Asia’s Next Giant: South Korea and Late Industrialization. New York: Oxford University Press.
Amsden A (2000) The rise of “the rest”: Challenges to the West from late-industrializing economies. Oxford: Oxford University Press.
Amsden A and Hikino T (1994) “Project executive capability, organisational know-how and conglomerate corporate growth in late-industrialisation.” Industry and Corporate Change, Vol. 3, No. 1, 111-147
Berglof E. and von Thadden L (1999) The Changing Corporate Governance Paradigm: Implications for Transition and Developing Countries. Unpublished Working Paper, Stockholm Institute of Transition Economics, Stockholm, Sweden.
Berle A and Means G (1933) The Modern Corporation and Private Capital, New York: Macmillan.
Bhinde A (1994) “The hidden cost of stock market liquidity.” Journal of Financial Economics, 31-51.
Camdessus M (1998) Speech to Transparency International reported in the IMF Survey, 9 February 1988.
Chandler AD (1977) The visible hand: The managerial revolution in American business. Cambridge, Mass: Harvard University Press.
Chang, H-J and Park, H-J (2000) Pp83-87 'An Alternative Perspective on Government Policy towards the Chaebol in Korea: Industrial Policy, Financial Regulations, and Political Democracy' in S-H. Jwa & I. Lee (eds.), Korean Chaebol in Transition: Road Ahead and Agenda, Seoul, Korea Economic Research Institute.
Claessens S, Djankov S and Lang L (2000) “The separation of ownership and control in East Asian Corporations”, Journal of Financial Economics. vol.58 81-112.
Corbett J and Jenkinson T (1997) The financing of industry, 1970-89: An international comparison.Published in Journal of Manchester School, Manchester, UK.
Cosh A, Hughes A and Singh A (1990) “Take-overs and short-termism in the United Kingdom: Analytical and Policy Issues in the U.K. Economy.” Institute for Public Policy Research , London.
Demirguc-Kunt, A. and Maksimovic, V.,(1996), ‘Stock Market Development and Firm Financing Choices’, The World Bank Economic Review, vol. 10. no.2, p. 354
Feldstein M (1998) “Trying to do too much,” Financial Times, March 3, 1998.
Glen J, Lee K and Singh A (2000) Competition, corporate governance and financing of corporate growth in emerging markets. Cambridge Discussion Paper in Accounting and Finance No. AF46, Department of Applied Economics, University of Cambridge.
Greenspan A (1998) Testimony before the Committee on Banking and Financial Services, US House of Representatives, January 30, 1998.
Hughes A (1989) “The Impact of Mergers: A Survey of Empirical Evidence for the UK" 1950-1990” in J. Fairburn and J.A. Kay (eds), Mergers and Merger Policy, 2nd edition, Oxford, 1989,
Iskander MR and Chamlou N (2000) Corporate governance: A framework for implementation. The World Bank, Washington DC.
Johnson S, Boone P, Breach A and Friedman E (2000) “Corporate governance in the Asian financial crisis”, Journal of Financial Economics, vol.58, 141-186.
Keynes, J. M.,(1936), The General Theory of Employment Interest and Money. Published by Harcourt, Brace and Company, New York.
Khanna T (2000) “Business groups and social welfare in emerging markets: Existing evidence and unanswered questions.” European Economic Review 44 (2000), 748-761.
Khanna T and Palepu K (1997) “Why focused strategies may be wrong for emerging markets.” Harvard Business Review, July-August. Vol 75 (4) 41 - 51
Khanna T and Palepu K (1999) “The right was to restructure conglomerates in emerging markets.” Harvard Business Review, July-August. Vol 8 271 - 310
Khanna T and Yafeh Y (2000) Business groups and risk sharing around the world. Social Science Research Network (SSRN) Working Paper Series (http://papers.ssrn.com), January 25, 2001.
Krause L (2000) “The aftermath of the Asian financial crisis for South Korea.” The Journal of the Korean Economy, Vol. 1, No. 1 (Spring), 1-22.
Krugman P (1999) The Return of Depression Economics. Harmondsworth: Penguin.
La Porta R, Lopez-de-Silanes F, Shleifer A and Vishny RW (1997) “Legal Determinants of External Finance,” Journal of Finance, 52, 1131-1150
La Porta R, Lopez-de-Silanes F, Shleifer A and Vishny RW (1998) “Law and Finance”, Journal of Political Economy, 106, 1113-55
La Porta R, Lopez-de-Silanes F, Shleifer A and Vishny RW (1999) “Investor Protection: Origins, Consequences, Reform,” Harvard University, manuscript.
La Porta R, Lopez-de-Silanes F, Shleifer A and Vishny RW (2000) “Agency Problems and Dividend Policies Around the World,” Journal of Finance, Vl58 pp3-27
Leff N (1979) “Entrepreneurship and Economic Development: The Problem Revisited”, Journal of Economic Literature, Vol.17 (17), 46-64.
Leff N (1978) “Industrial Organization and Entrepreneurship in Developing Countries: The Economic Groups”, Economic Development and Cultural Change, vol.4 (26), 661-675.
Maddison A (1991) Dynamic forces in capital development: A long-run perspective. Oxford: Oxford University Press.
Mayer C (1990) “Financial systems, corporate finance and economic development” in R. Glen Hubbard ed. Asymmetric information, corporate finance and investment. Chicago: University of Chicago Press.
Peacock A and Bannock G (1991) Corporate take-overs and the public interest. Aberdeen: Aberdeen University press for the David Hume Institute.
Phelps ES (1999) “The Global Crisis of Corporatism”, in Wall Street Journal, 25 March, 1999.
Porter ME (1992) Vol 70 (5) “Capital disadvantage: America’s falling capital investment system.” Harvard Business Review, September-October, 65-82. Vol 70 No. 5, pp. 65-82
Ravenscraft DJ and Scherer FM (1987) Mergers, sell-offs and economic efficiency. Washington DC: Brookings Institution.
Scherer FM (1998) “Corporate take-overs: The efficiency argument.” Journal of Economic Perspectives, Vol. 2, No. 1 (Winter) pp69 - 82.
Shiller, R. J., Irrational Exuberance (2000), Princeton University Press, Chichester, UK.
Shleifer A and Summers L. (1988) “Breach of trust in hostile take-overs” in Alan Auerbach ed. Corporate take-overs: Causes and consequences, Chicago: University of Chicago pp 33-61.
Shleifer A and Vishny RW (1997) “A survey of corporate governance.” Journal of Finance, 52, 737-783.
Singh A (1971) Take-overs, Their Relevance to the Stock Market and the Theory of the Firm. Cambridge: Cambridge University Press.
Singh A (1975) “Take-overs, Economic Natural Selection and the Theory of the Firm”, Economic Journal, September Vol 85 pp497 - 515.
Singh A (1992) “Corporate Takeovers”, in J. Eatwell, M. Milgate and P. Newman (eds), The New Palgrave Dictionary of Money and Finance. London: Macmillan, 480-6.
Singh A (1995a) Corporate Financial Patterns in Industrializing Economies: A Comparative International Study. IFC Technical Paper. Washington, DC: IFC.
Singh A (1995b) “The causes of fast economic growth in East Asia.” UNCTAD Review91-127 .
Singh A (1997) “Financial liberalisation, stock markets and economic development”, Economic Journal, May Vol 107 (442), 771-782.
Singh A (1998a) “Liberalisation, the stock market and the market for corporate control: a bridge too far for the Indian economy?” In Ahluwalia, IJ and Little IMD (eds) India’s Economic Reforms and Development: Essays for Manmohan Singh. Oxford pp169-196
Singh A (1998b) “Financial crisis in East Asia: The end of the Asian Model?”, Issues in Development, Discussion Paper 24, ILO, Geneva.
Singh A (1999) “’Asian capitalism’ and the financial crisis” in Michie J and Grieve Smith J(eds), Global Instability: The political economy of world economic governance, London: Routledge, 9-36.
Singh A (2000) “The Anglo-Saxon market for corporate control: The financial system and international competitiveness” in Candice Howes and Ajit Singh ed. Competitiveness matters: Industry and economic performance in the US. Ann Arbor: University of Michigan Press pp89 - 105.
Singh A and Hamid J (1992) Corporate financial structures in developing countries. Technical Paper 1, IFC, Washington DC.
Singh A and Weisse B (1998) “Emerging stock markets, portfolio capital flows and long-term economic growth: Micro and Macro Perspectives.” World Development, Vol. 26, No. 4, pp607-622.
Singh A and Weisse B (1999) “The Asian model: A crisis foretold?” International Social Science Journal, No. 160.
Singh A., Singh A. and Weisse (2003) ‘Corporate Governance, Competition, the New International Financial Architecture and Large Corporations in Emerging Markets’, forthcoming in Management and Capital Flows: comparative experiences and implications for Africa, UNCTAD, Geneva.
Stein JC (1989) “Efficient stock markets, inefficient firms: A model of myopic corporate behaviour.” Quarterly Journal of Economics, November.
Summers LH (1998) “Opportunities Out of Crises: Lessons From Asia”, Remarks to the Overseas Development Council, From the Office of Public Affairs, March 19, 1998.
Tobin, J.(1984), ‘On the Efficiency of the financial system’, Lloyds Bank ‘Review, 1-15, July.
Whittington G, Saporta V and Singh A (1997) The Effects of Hyper-Inflation on Accounting Ratios: Financing of Corporate Growth in Industrialising Economies, Technical Paper3, IFC, Washington.
Williamson OE (1975) Markets and hierarchies: Analysis and antitrust implications. New: York: The Free Press.