Extensiveness and Effectiveness of Corporate Governance Regulations in South-Eastern Europe
The purpose of the article is to illustrate the main
characteristics of the corporate governance challenge facing the
countries of South-Eastern Europe (SEE) and to subsequently
determine and assess the extensiveness and effectiveness of corporate
governance regulations in these countries. Therefore, we start with an
overview on the subject of the key problems of corporate governance
in transition. We then address the issue of corporate governance
measurement for SEE countries. To this end, we include a review of
the methodological framework for determining both the
extensiveness and the effectiveness of corporate governance
legislation. We then focus on the actual analysis of the quality of
corporate governance codes, as well as of legal institutions
effectiveness and provide a measure of corporate governance in
Romania and other SEE emerging markets. The paper concludes by
emphasizing the corporate governance enforcement gap and by
identifying research issues that require further study.
[1] K. Pistor, M. Raiser, S. Gelfer, "Law and Finance in Transition
Economies", The Economics of Transition 8, 2000, pp. 325-368.
[2] European Bank for Reconstruction and Development (EBRD), "Legal
Indicator Survey", EBRD, London, 2005.
[3] S. Puffer, D. McCarthy, "The emergence of corporate governance in
Russia", Journal of World Business, Vol. 38, 2003, pp. 284-298.
[4] J. C. Coffee, "Privatization and corporate governance: The lessons from
securities market failure", Journal of Corporation Law 25, 1999, pp. 1-
39.
[5] J. Kornai, "The Socialist System: The Political Economy of
Communism", Princeton, N.J.: Princeton University Press, 1992.
[6] S. Djankov, E. L.Glaeser, R. La Porta, F. Lopez-de-Silanes, and A.
Shleifer, A., "The New Comparative Economics", World Bank Policy
Research Working Paper No. 3054, 2003.
[7] A. Dyck, "Privatization and Corporate Governance: Principles,
Evidence, and Future Challenges", World Bank Research Observer 1,
1999, pp. 59-84.
[8] B. Black, R. Kraakman, A. Tarassova, "Russian Privatization and
Corporate Governance: What Went Wrong?", Stanford Law Review
52(5), 2000, pp. 1731-1808.
[9] S. Claessens, "Corporate governance and development", in Focus 1:
Corporate Governance and Development, World Bank, Washington,
D.C, 2003.
[10] World Bank, "Doing Business Survey", 2006,
http://rru.worldbank.org/DoingBusiness/default.aspx.
[11] Transparency International, "Corruption Perception Indices", 2004,
2005, 2006.
[12] European Bank for Reconstruction and Development (EBRD),
"Transition Report. Business in transition", EBRD, London, 2005.
[13] R. La Porta, F. Lopez-de Silanes, A. Shleifer, R. Vishny, LLSV, "Legal
Determinants of External Finance", Journal of Finance 52, 1997, pp.
1131-1150.
[14] A. Khachaturyan, "The Economics of Corporate Governance Regulation
in the EU", University of Siena Working Paper, 2004.
[15] E. Berglof, A. Pajuste, "Emerging Owners, Eclipsing Markets?
Corporate Governance in Central and Eastern Europe", in P. Cornelius
and B. Kogut, Global Competitiveness and Corporate Governance,
Oxford University Press, 2003, pp. 267-302.
[16] E. Berglöf, A. Pajuste, "What do firms disclose and why? Enforcing
corporate governance and transparency in Central and Eastern Europe",
Oxford Review of Economic Policy 21 (2), 2005, pp. 178-197.
[17] E. Berglöf, E. von Thadden, "The Changing Corporate Governance
Paradigm", in Pleskovic and Stiglitz (eds.) World Development
Conference, The World Bank, 2000.
[18] E. Berglöf, S. Claessens, "Enforcement and corporate governance",
World Bank Policy Research Working Paper No. 3409, 2004.
[19] European Bank for Reconstruction and Development (EBRD), "Legal
Sector Assessment", EBRD, London, 2004.
[20] H. J. Gregory, R. T. Simmelkjaer, "Comparative study of corporate
governance codes relevant to the European Union and its member
states", Weil, Gotshal & Manges LLP, 2002.
[21] M. Becht., P. Bolton, A. Roëll, "Corporate Governance and Control", in
G. Constantinides, M. Harris, and R. Stulz (eds), Handbook of the
Economics of Finance, Amsterdam, 2003.
[22] R. La Porta, F. Lopez-de Silanes, A. Shleifer, R. Vishny, LLSV, "Law
and Finance", Journal of Political Economy 106, 1998. pp. 1113-1155.
[23] R. La Porta, F. Lopez-de Silanes, A. Shleifer, R. Vishny, LLSV,
"Investor Protection and Corporate Valuation", Journal of Finance 57,
2002, pp.1147-1170.
[24] U. C. Braendle, J. Noll, "The Societas Europaea - A Step Towards
Convergence of Corporate Governance Systems?", 2005, available at
SSRN: http://ssrn.com/abstract=704881.
[1] K. Pistor, M. Raiser, S. Gelfer, "Law and Finance in Transition
Economies", The Economics of Transition 8, 2000, pp. 325-368.
[2] European Bank for Reconstruction and Development (EBRD), "Legal
Indicator Survey", EBRD, London, 2005.
[3] S. Puffer, D. McCarthy, "The emergence of corporate governance in
Russia", Journal of World Business, Vol. 38, 2003, pp. 284-298.
[4] J. C. Coffee, "Privatization and corporate governance: The lessons from
securities market failure", Journal of Corporation Law 25, 1999, pp. 1-
39.
[5] J. Kornai, "The Socialist System: The Political Economy of
Communism", Princeton, N.J.: Princeton University Press, 1992.
[6] S. Djankov, E. L.Glaeser, R. La Porta, F. Lopez-de-Silanes, and A.
Shleifer, A., "The New Comparative Economics", World Bank Policy
Research Working Paper No. 3054, 2003.
[7] A. Dyck, "Privatization and Corporate Governance: Principles,
Evidence, and Future Challenges", World Bank Research Observer 1,
1999, pp. 59-84.
[8] B. Black, R. Kraakman, A. Tarassova, "Russian Privatization and
Corporate Governance: What Went Wrong?", Stanford Law Review
52(5), 2000, pp. 1731-1808.
[9] S. Claessens, "Corporate governance and development", in Focus 1:
Corporate Governance and Development, World Bank, Washington,
D.C, 2003.
[10] World Bank, "Doing Business Survey", 2006,
http://rru.worldbank.org/DoingBusiness/default.aspx.
[11] Transparency International, "Corruption Perception Indices", 2004,
2005, 2006.
[12] European Bank for Reconstruction and Development (EBRD),
"Transition Report. Business in transition", EBRD, London, 2005.
[13] R. La Porta, F. Lopez-de Silanes, A. Shleifer, R. Vishny, LLSV, "Legal
Determinants of External Finance", Journal of Finance 52, 1997, pp.
1131-1150.
[14] A. Khachaturyan, "The Economics of Corporate Governance Regulation
in the EU", University of Siena Working Paper, 2004.
[15] E. Berglof, A. Pajuste, "Emerging Owners, Eclipsing Markets?
Corporate Governance in Central and Eastern Europe", in P. Cornelius
and B. Kogut, Global Competitiveness and Corporate Governance,
Oxford University Press, 2003, pp. 267-302.
[16] E. Berglöf, A. Pajuste, "What do firms disclose and why? Enforcing
corporate governance and transparency in Central and Eastern Europe",
Oxford Review of Economic Policy 21 (2), 2005, pp. 178-197.
[17] E. Berglöf, E. von Thadden, "The Changing Corporate Governance
Paradigm", in Pleskovic and Stiglitz (eds.) World Development
Conference, The World Bank, 2000.
[18] E. Berglöf, S. Claessens, "Enforcement and corporate governance",
World Bank Policy Research Working Paper No. 3409, 2004.
[19] European Bank for Reconstruction and Development (EBRD), "Legal
Sector Assessment", EBRD, London, 2004.
[20] H. J. Gregory, R. T. Simmelkjaer, "Comparative study of corporate
governance codes relevant to the European Union and its member
states", Weil, Gotshal & Manges LLP, 2002.
[21] M. Becht., P. Bolton, A. Roëll, "Corporate Governance and Control", in
G. Constantinides, M. Harris, and R. Stulz (eds), Handbook of the
Economics of Finance, Amsterdam, 2003.
[22] R. La Porta, F. Lopez-de Silanes, A. Shleifer, R. Vishny, LLSV, "Law
and Finance", Journal of Political Economy 106, 1998. pp. 1113-1155.
[23] R. La Porta, F. Lopez-de Silanes, A. Shleifer, R. Vishny, LLSV,
"Investor Protection and Corporate Valuation", Journal of Finance 57,
2002, pp.1147-1170.
[24] U. C. Braendle, J. Noll, "The Societas Europaea - A Step Towards
Convergence of Corporate Governance Systems?", 2005, available at
SSRN: http://ssrn.com/abstract=704881.
@article{"International Journal of Business, Human and Social Sciences:64010", author = "Ana Bobirca and Paul-Gabriel Miclaus", title = "Extensiveness and Effectiveness of Corporate Governance Regulations in South-Eastern Europe", abstract = "The purpose of the article is to illustrate the main
characteristics of the corporate governance challenge facing the
countries of South-Eastern Europe (SEE) and to subsequently
determine and assess the extensiveness and effectiveness of corporate
governance regulations in these countries. Therefore, we start with an
overview on the subject of the key problems of corporate governance
in transition. We then address the issue of corporate governance
measurement for SEE countries. To this end, we include a review of
the methodological framework for determining both the
extensiveness and the effectiveness of corporate governance
legislation. We then focus on the actual analysis of the quality of
corporate governance codes, as well as of legal institutions
effectiveness and provide a measure of corporate governance in
Romania and other SEE emerging markets. The paper concludes by
emphasizing the corporate governance enforcement gap and by
identifying research issues that require further study.", keywords = "corporate governance, effectiveness, extensiveness,
South-Eastern Europe", volume = "1", number = "6", pages = "289-6", }
