Corporate Governance Modernization: Legal Trends and Challenges

Trends in Corporate Governance

The popular press and scholarly studies have noted a number of trends in corporate governance. This paper addresses, from a theoretical perspective, whether these trends are linked. And, if so, how? The paper finds that a trend toward greater board diligence will lead, sometimes through subtle or indirect mechanisms, to trends toward more external candidates becoming ceo, shorter tenures for ce...

Ownership Structure, Legal Protections and Corporate Governance

This paper surveys the issues and devises an analytical framework for policy makers and policy advisors concerned with corporate governance. The framework takes a functional approach, identifying six functions provided by a governance system. The paper highlights the possibilities and limits to governance reform through the adoption of legal protections and the use of ownership structure. I cau...

Corporate Governance in India – Evolution and Challenges

While recent high-profile corporate governance failures in developed countries have brought the subject to media attention, the issue has always been central to finance and economics. The issue is particularly important for developing countries since it is central to financial and economic development. Recent research has established that financial development is largely dependent on investor p...

Legal Institutions, Corporate Governance and Aggregate Activity: Theory and Evidence∗

This paper investigates the relation between the degree of creditors’ legal protection and corporate decisions and the effects of this interaction on aggregate activity, both theoretically and empirically. We develop a two country general equilibrium model with overlapping generations. We assume asymmetric information in the credit market and we allow individuals to sign collateralized credit c...

Corporate governance after Enron: recommendation and legal responses