Publication:
Firms Behaving Nicely : Incentives and Commitment

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dc.contributor.authorKlein, Michael
dc.date.accessioned2014-07-28T22:25:22Z
dc.date.available2014-07-28T22:25:22Z
dc.date.issued2013-09-26
dc.description.abstractEver since the rise of large firms in the 18th century, debate has been raging about how to combine economic efficiency and productivity with socially desirable behavior of firms. This paper reviews the debate starting with the classic corporate governance argument about shareholder rights. It discusses the potential incentives to exploit other stakeholders unduly and examines some mechanisms, beyond contracts and regulation, to cope with this exploitation. In this light it considers reputational mechanisms, using the example of corporate social responsibility, and changes to the constitution of firms, with emphasis on the nonprofit form of enterprise. Based on evidence so far, the for-profit firm with mechanisms assuring sound shareholder rights remains preferable to the alternatives. However, scope for experimentation with mechanisms such as different classes of shareholders with differing voting rights may be socially useful, which suggests that global corporate governance principles thus should not be prescriptive in detail.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/09/19541781/firms-behaving-nicely-incentives-commitment
dc.identifier.doi10.1596/19037
dc.identifier.urihttps://hdl.handle.net/10986/19037
dc.languageEnglish
dc.language.isoen_US
dc.publisherInternational Finance Corporation, Washington, DC
dc.relation.ispartofseriesGlobal Corporate Governance Forum focus series;no. 12
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectACCOUNTING STANDARDS
dc.subjectAGENCY PROBLEM
dc.subjectAGENTS OF SHAREHOLDERS
dc.subjectASSET MANAGER
dc.subjectASYMMETRIC INFORMATION
dc.subjectBANKRUPTCY
dc.subjectBANKS
dc.subjectBID
dc.subjectBOARD MEMBERS
dc.subjectBONDS
dc.subjectBORROWER
dc.subjectBUYBACKS
dc.subjectCASH FLOW
dc.subjectCEO
dc.subjectCEOS
dc.subjectCHECKS
dc.subjectCHIEF EXECUTIVE
dc.subjectCOLLATERAL
dc.subjectCOMMITMENT DEVICES
dc.subjectCOMPANIES ACT
dc.subjectCOMPANY LAW
dc.subjectCOMPETITIVE MARKETS
dc.subjectCONFLICTS OF INTEREST
dc.subjectCONTRACTUAL SAVING
dc.subjectCONTROLLING MINORITY
dc.subjectCONTROLLING SHAREHOLDERS
dc.subjectCOOPERATIVES
dc.subjectCORPORATE BEHAVIOR
dc.subjectCORPORATE CONDUCT
dc.subjectCORPORATE EXECUTIVES
dc.subjectCORPORATE FINANCE
dc.subjectCORPORATE FORM
dc.subjectCORPORATE GOVERNANCE
dc.subjectCORPORATE GOVERNANCE MECHANISMS
dc.subjectCORPORATE GOVERNANCE PRINCIPLES
dc.subjectCORPORATE GOVERNANCE STANDARDS
dc.subjectCORPORATE ORGANIZATION
dc.subjectCORPORATE RAIDERS
dc.subjectCORPORATE SCANDALS
dc.subjectCORPORATE SOCIAL RESPONSIBILITY
dc.subjectCORPORATE STRUCTURE
dc.subjectCORPORATION
dc.subjectCORPORATIONS
dc.subjectCOST OF CAPITAL
dc.subjectCREDIBILITY
dc.subjectCREDIT DEFAULT
dc.subjectCREDIT DEFAULT SWAPS
dc.subjectCREDITORS
dc.subjectCUSTODY
dc.subjectDEBT
dc.subjectDEBT CONTRACT
dc.subjectDEBT CONTRACTS
dc.subjectDEBT MARKETS
dc.subjectDEBT OBLIGATIONS
dc.subjectDEBT SERVICE
dc.subjectDEBT SERVICE PAYMENTS
dc.subjectDEFAULT RISK
dc.subjectDEFAULTS
dc.subjectDERIVATIVE
dc.subjectDEVELOPING COUNTRIES
dc.subjectDIVIDEND
dc.subjectDIVIDEND FIRMS
dc.subjectDIVIDEND PAYMENTS
dc.subjectDIVIDENDS
dc.subjectECONOMIC EFFICIENCY
dc.subjectEMERGING MARKETS
dc.subjectEMPLOYMENT CONTRACTS
dc.subjectENFORCEMENT SYSTEM
dc.subjectEQUITY CONTRIBUTIONS
dc.subjectEQUITY MARKETS
dc.subjectEQUITY SECURITIES
dc.subjectETHICAL BEHAVIOR
dc.subjectEX ANTE
dc.subjectEX POST
dc.subjectEXCESS RETURN
dc.subjectEXPENDITURES
dc.subjectEXTERNAL FINANCE
dc.subjectFAMILY BUSINESSES
dc.subjectFAMILY FIRMS
dc.subjectFIDUCIARY DUTY
dc.subjectFINANCE CORPORATION
dc.subjectFINANCES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL PERFORMANCE
dc.subjectFINANCIAL RISK
dc.subjectFINANCIAL SECTOR
dc.subjectFOREIGN INVESTORS
dc.subjectFRAUD
dc.subjectFUND MANAGER
dc.subjectFUND MANAGERS
dc.subjectGLOBAL CORPORATE GOVERNANCE
dc.subjectGOOD CORPORATE GOVERNANCE
dc.subjectGOVERNANCE ARRANGEMENTS
dc.subjectGOVERNANCE STANDARDS
dc.subjectGOVERNMENT POLICIES
dc.subjectHOLDING
dc.subjectHOLDINGS
dc.subjectHOSTILE TAKEOVERS
dc.subjectHUMAN RESOURCE
dc.subjectINCORPORATED
dc.subjectINCORPORATION
dc.subjectINDIVIDUALS
dc.subjectINITIAL PUBLIC OFFERING
dc.subjectINSURANCE
dc.subjectINSURANCE COMPANIES
dc.subjectINSURANCE COMPANY
dc.subjectINTEREST PAYMENTS
dc.subjectINTEREST RATE
dc.subjectINTERESTS OF SHAREHOLDERS
dc.subjectINTERNAL FINANCE
dc.subjectINTERNATIONAL FINANCE
dc.subjectINVESTING
dc.subjectINVESTMENT FUNDS
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectINVESTMENT VEHICLES
dc.subjectISSUANCE
dc.subjectJOINT STOCK COMPANIES
dc.subjectJOINT-STOCK COMPANIES
dc.subjectLARGE COMPANIES
dc.subjectLARGE SHAREHOLDER
dc.subjectLARGE SHAREHOLDERS
dc.subjectLEGAL FRAMEWORK
dc.subjectLEGAL FRAMEWORKS
dc.subjectLEGAL PROTECTION
dc.subjectLEGAL PROTECTIONS
dc.subjectLIMITED
dc.subjectLIMITED LIABILITY
dc.subjectLIQUIDATION
dc.subjectLIQUIDITY
dc.subjectLONG-TERM INTEREST
dc.subjectLONG-TERM INTERESTS
dc.subjectMAJORITY OF SHARES
dc.subjectMAJORITY SHAREHOLDERS
dc.subjectMARKET ANALYSTS
dc.subjectMARKET BENCHMARKS
dc.subjectMARKET COMPETITION
dc.subjectMARKET INFRASTRUCTURE
dc.subjectMICROFINANCE
dc.subjectMINORITY INVESTORS
dc.subjectMINORITY SHAREHOLDER
dc.subjectMINORITY SHAREHOLDERS
dc.subjectMOBILE PHONE
dc.subjectMODERN BUSINESS
dc.subjectMONETARY FUND
dc.subjectMONOPOLY
dc.subjectMONOPOLY POWERS
dc.subjectMORAL HAZARD
dc.subjectMORTGAGE
dc.subjectMORTGAGE MARKET
dc.subjectMUNICIPALITIES
dc.subjectMUTUAL FUNDS
dc.subjectNONPROFIT AGENCIES
dc.subjectNONPROFIT ORGANIZATION
dc.subjectNONPROFIT ORGANIZATIONS
dc.subjectNONPROFIT STATUS
dc.subjectPENSION
dc.subjectPENSION FUND
dc.subjectPENSION FUNDS
dc.subjectPENSIONS
dc.subjectPOISON PILLS
dc.subjectPRICE-EARNINGS RATIOS
dc.subjectPRINCIPAL-AGENT
dc.subjectPRINCIPAL-AGENT PROBLEM
dc.subjectPRIVATE PROPERTY
dc.subjectPRIVATE SECTOR DEVELOPMENT
dc.subjectPROTECTING MINORITY SHAREHOLDERS
dc.subjectREGULATORY FRAMEWORKS
dc.subjectREGULATORY REFORMS
dc.subjectREPAYMENT
dc.subjectRETAIL INVESTORS
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectRETURNS ON EQUITY
dc.subjectRIGHT OF SHAREHOLDERS
dc.subjectRISK PREMIUMS
dc.subjectSAVINGS
dc.subjectSEPARATION OF OWNERSHIP
dc.subjectSEVERANCE PAYMENTS
dc.subjectSHARE OF EQUITY
dc.subjectSHARE OF INVESTMENTS
dc.subjectSHARE VALUE
dc.subjectSHAREHOLDER
dc.subjectSHAREHOLDER CONTROL
dc.subjectSHAREHOLDER INTERESTS
dc.subjectSHAREHOLDER PROTECTIONS
dc.subjectSHAREHOLDER RELATIONSHIPS
dc.subjectSHAREHOLDER RIGHTS
dc.subjectSHAREHOLDER VALUE
dc.subjectSHAREHOLDERS
dc.subjectSHAREHOLDERS RIGHTS
dc.subjectSMALL INVESTORS
dc.subjectSOCIETIES
dc.subjectSOCIETY
dc.subjectSPECIFIC INVESTMENT
dc.subjectSPECIFIC INVESTMENTS
dc.subjectSTAKEHOLDER
dc.subjectSTAKEHOLDER MANAGEMENT
dc.subjectSTAKEHOLDERS
dc.subjectSTOCK EXCHANGES
dc.subjectSTOCK MARKET
dc.subjectSTOCK OPTIONS
dc.subjectSTOCKHOLDERS
dc.subjectSTOCKS
dc.subjectSUBSIDIARY
dc.subjectSUPERIOR ORGANIZATIONAL FORMS
dc.subjectSUPERVISORY BOARD
dc.subjectSUPERVISORY BOARDS
dc.subjectTAKEOVER
dc.subjectTAKEOVER BID
dc.subjectTAX
dc.subjectTRADING
dc.subjectTRANSACTION
dc.subjectTRANSACTION COSTS
dc.subjectTRANSPARENCY
dc.subjectTREASURY
dc.subjectTREASURY BILLS
dc.subjectTRUSTEES
dc.subjectWEALTH CREATION
dc.subjectWORLD MARKETS
dc.titleFirms Behaving Nicely : Incentives and Commitmenten
dspace.entity.typePublication
okr.date.disclosure2014-05-20
okr.date.doiregistration2025-05-05T11:44:09.155166Z
okr.doctypePublications & Research::Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2013/09/19541781/firms-behaving-nicely-incentives-commitment
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.globalpracticeTrade and Competitiveness
okr.guid346901468162295151
okr.identifier.externaldocumentum000456286_20140520151146
okr.identifier.internaldocumentum19541781
okr.identifier.report88177
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/05/20/000456286_20140520151146/Rendered/PDF/881770NWP0Focu00Box385205B00PUBLIC0.pdfen
okr.topicFinance and Financial Sector Development::Microfinance
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicPrivate Sector Development::Emerging Markets
okr.topicLaw and Development::Corporate Law
okr.topicFinance and Financial Sector Development::Debt Markets
okr.unitCorporate Governance Forum (CESGF)
okr.volume1 of 1
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