Dyck, Alexander2014-02-202014-02-202001-04World Bank Research Observerhttps://hdl.handle.net/10986/17129Unless developing countries embrace a corporate governance perspective, privatization is unlikely to provide the benefits of improved performance with accountability. This article introduces the concept of governance chains that can constrain the grabbing hands of public and private actors by providing information and accountability mechanisms to help investors monitor managers. Empirical data on established firms from 49 countries provide estimates of the relative importance and strength of private and formal chains of governance. The framework and empirical benchmarks help explain the outcomes of past privatizations and suggest certain steps that governments can pursue to be sure to get the most out of future privatization activity.en-USCC BY-NC-ND 3.0 IGOACCESS TO INFORMATIONACCOUNTABILITYACCOUNTABILITY MECHANISMSACCOUNTINGACCOUNTING PRACTICESAGENCY PROBLEMSASSET SALESAUCTIONSAUDITINGAUTHORITYBANKING SYSTEMSBANKRUPTCYBANKRUPTCY LAWSBANKRUPTCY PROCEEDINGSBANKSBIDBOARDS OF DIRECTORSBONDBROKERAGEBROKERAGE FIRMSBROKERAGE HOUSESBUSINESS ENVIRONMENTBUSINESS LICENSESCASH FLOWCIVIL LAWCOMMON LAWCONFLICTS OF INTERESTCONTRACT ENFORCEMENTCONTRACT REPUDIATIONCORPORATE GOVERNANCECORPORATE LAWSCORPORATE PERFORMANCECORRUPTIONCREDIBILITYCREDIT-RATING AGENCIESCREDITORSCURRENCYCUSTOMER BASEDEBTDECISION MAKINGDECISION-MAKINGDECISION-MAKING POWERDEPOSITORYDEVELOPING COUNTRIESDEVELOPING ECONOMIESDISCLOSURE LAWSDIVIDENDDIVIDEND POLICIESDIVIDENDSDOMESTIC EXCHANGESDOMESTIC INVESTORECONOMIC POWEREFFECTIVE GOVERNANCEEMERGING MARKETSENTREPRENEURSHIPEQUITY INVESTORSEQUITY MARKETSEQUITY RETURNSEXCHANGE COMMISSIONEXTERNAL FINANCEFEDERAL GOVERNMENTFINANCIAL CRISISFINANCIAL INFORMATIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARIESFINANCIAL PERFORMANCEFINANCIAL RETURNSFINANCIAL SYSTEMFINANCIERFIRM ASSETSFLOW OF INFORMATIONFOREIGN EXCHANGEFOREIGN EXCHANGESFOREIGN FIRMSFOREIGN INVESTORFOREIGN INVESTORSFOREIGN OWNERSHIPFOREIGN STOCKFORMAL ECONOMYFORMAL INSTITUTIONSFUND MANAGERSFUTURE GROWTHFUTURE PROSPECTSGOVERNANCE MEASURESGOVERNANCE MECHANISMGOVERNANCE MECHANISMSGOVERNMENT OFFICIALSGOVERNMENT REGULATIONSGOVERNMENT SERVICESGROSS DOMESTIC PRODUCTGROWTH RATESHEDGE FUNDSHOLDINGHOME COUNTRIESHOME COUNTRYINCOMEINCOMESINFORMATION DISCLOSUREINFORMATION FLOWSINSIDER TRADINGINSTITUTIONAL DEVELOPMENTINSTITUTIONAL ENVIRONMENTINSTITUTIONAL INVESTORSINSTITUTIONAL STRUCTUREINSURANCEINTERNATIONAL BANKINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL MARKETSINTERNATIONAL STANDARDINVESTINGINVESTMENT OPPORTUNITIESINVESTMENT PRIVATIZATIONINVESTMENT PROJECTSINVESTOR PROTECTIONINVESTOR PROTECTIONSISSUERS OF SECURITIESJUDICIAL SYSTEMJUDICIARYJURISDICTIONSLEGAL ENVIRONMENTSLEGAL FRAMEWORKSLEGAL INSTITUTIONSLEGAL MECHANISMSLEGAL PROTECTIONLEGAL PROTECTIONSLEGAL TRADITIONLEGISLATIONLIQUIDITYLOANLOAN CLASSIFICATIONLONG-TERM FINANCEMAJORITY SHAREHOLDERSMARKET CAPITALIZATIONMARKET DEVELOPMENTMARKET PRICESMINORITY INVESTORSMINORITY SHAREHOLDERSMONETARY FUNDMOTIVATIONSNATIONAL BANKOPPORTUNITY COSTOUTSIDE INVESTORSOWNERSHIP STRUCTUREOWNERSHIP STRUCTURESPENALTIESPENSIONPENSION FUNDSPOLITICAL ECONOMYPORTFOLIOSPOTENTIAL INVESTMENTPREFERENTIAL ACCESSPRIVATE CAPITALPRIVATE CAPITAL FLOWSPRIVATE ENTITIESPRIVATE INVESTORSPRIVATE OWNERSHIPPRIVATE PARTIESPRIVATE PENSIONPRIVATE SALESPRIVATE SECTOR DEVELOPMENTPRIVATIZATIONPRIVATIZATIONSPROPERTY RIGHTSPUBLIC INSTITUTIONSRATING AGENCIESREGULATORSREGULATORY AGENCIESREGULATORY AUTHORITIESREGULATORY BODIESREGULATORY INTERVENTIONSREINVESTMENTREINVESTMENT RATESREPRESENTATIVESREPUBLICSREPUTATIONREPUTATIONSRESOURCE ALLOCATIONRISK OF CONTRACT REPUDIATIONRISK OF EXPROPRIATIONRULE OF LAWSECURITIESSECURITIES EXCHANGESSECURITIES MARKETSSECURITIES REGULATORSELF-REGULATIONSEPARATION OF POWERSSHARE PRICESSHAREHOLDERSHAREHOLDER RIGHTSSHORT-TERM CAPITALSOCIAL WELFARESOCIALISMSTATE OWNERSHIPSTATE PROPERTYSTATE REVENUESSTOCK EXCHANGESTOCK EXCHANGESSTOCK MARKETSSTRATEGIC INVESTORTAXTAX PAYMENTSTRADE CREDITSTRANSACTIONTRANSACTION COSTSTRANSFER OF TITLETRANSITION COUNTRIESTRANSITION ECONOMIESTRUSTEEVALUATIONVENTURE CAPITALISTSVOTINGVOUCHER PRIVATIZATIONVOUCHER PRIVATIZATIONSWAGESJournal ArticleWorld Bank10.1596/17129