Publication: Self-Dealing : Sneaking Corporate Value through the Back Door
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Published
2006-09
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Date
2012-08-13
Author(s)
Hickey, Catherine
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Abstract
Self-dealing, prevalent in emerging markets, often harms minority shareholders. The related-party transaction is one common technique, especially in markets with weak law enforcement. Beyond self-dealing, other methods of expropriation, such as insider trading and dilution of share value, can also harm minorities. Countries can use several tactics to combat self-dealing, including improving disclosure, strengthening regulatory enforcement, and increasing public awareness of good governance and investor rights. While not always successful, these measures often go a long way toward protecting minority investors.
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“Hickey, Catherine; Nenova, Tatiana. 2006. Self-Dealing : Sneaking Corporate Value through the Back Door. Viewpoint: Public Policy for the Private Sector; Note No. 312. © World Bank. http://hdl.handle.net/10986/11176 License: CC BY 3.0 IGO.”
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