World Bank2012-08-132012-08-132009-03https://hdl.handle.net/10986/11124With the recent stock market frauds in markets around the world such as the Madoff case in the U.S. and the recent Satyam fraud in India, no nation can hold its head high and claim to have good corporate governance. The reality is that the problems of fraud, faulty audits, misleading accounts, lack of transparency, conflicts of interest, criminal destruction of records and a long list of other corporate governance violations, are not limited to emerging markets but are very much in evidence in developed markets as well. Given recent events then, the importance of sound corporate governance is becoming increasingly apparent. International organizations like the Organization for Economic Co-operation and Development (OECD), the World Bank and the International Corporate Governance Network (ICGN), along with major fund managers, are formulating sets of codes and principles that can be applied globally. It is also clear, however, that governments have generally done a poor job of policing the complex world of finance and that the greater part of the task will be left to self policing on the part of the participants. There is no doubt about it: sound corporate governance pays. Several studies undertaken by various organizations have shown that: there is a direct relationship between good corporate governance and investment returns. The oversight that comes from transparency and accountability creates a structure where the managers are discouraged from mismanaging the company, be it though a lack of diligence or care, improper decision-making, or even intentioned unconscionable behavior.CC BY-NC-ND 3.0 IGOACCOUNTINGACCOUNTING STANDARDSADVISORY GROUPARBITRAGEASSET PRICESAUDITSBAILOUTSBANK FOR INTERNATIONAL SETTLEMENTSBANKRUPTCYBASIS POINTSBONDBORROWERBROKERSBUSINESS SCHOOLBUSINESS SCHOOLSCAPITAL INFLOWSCAPITAL MARKETCAPITAL MARKETSCASH MARKETCDSCENTRAL BANKCENTRAL BANKSCOLLATERALCONFLICTS OF INTERESTCORPORATE GOVERNANCECORPORATE PERFORMANCECREDIBILITYCREDIT DEFAULTCREDIT DEFAULT SWAPSCREDIT DERIVATIVECREDIT DERIVATIVESCREDIT RISKCURRENCYCURRENCY MARKETCURRENT ACCOUNTCURRENT ACCOUNT DEFICITSDEBTDEBT MARKETDEBT OBLIGATIONSDEPOSITORSDERIVATIVE INSTRUMENTSDERIVATIVE MARKETSDERIVATIVE PRODUCTSDERIVATIVESDERIVATIVES MARKETSDEVELOPMENT BANKDISCLOSURE NORMSDISCLOSURE REQUIREMENTDISCLOSURE STANDARDSDUE DILIGENCEEARNINGSECONOMIC EFFECTSECONOMIC PERFORMANCEECONOMIC POLICIESECONOMIC REFORMECONOMIC REFORMSECONOMICSEMERGING MARKETSEQUITY DERIVATIVESEQUITY MARKETSEQUITY PRICESEXCHANGE BOARDEXCHANGE RATEFAIRFAIR VALUEFEDERAL RESERVEFINANCE COMPANIESFINANCE CORPORATIONFINANCIAL CRISESFINANCIAL CRISISFINANCIAL INNOVATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTFINANCIAL INSTRUMENTSFINANCIAL MARKETFINANCIAL MARKET PARTICIPANTSFINANCIAL MARKETSFINANCIAL PRODUCTSFINANCIAL REFORMSFINANCIAL REGULATIONFINANCIAL REGULATIONSFINANCIAL REGULATORSFINANCIAL SECTORFINANCIAL SERVICEFINANCIAL SERVICESFINANCIAL SHOCKFINANCIAL STABILITYFINANCIAL STATEMENTSFINANCIAL SYSTEMFOREIGN EXCHANGEFOREIGN EXCHANGE MANAGEMENTFOREIGN INSTITUTIONAL INVESTORSFOREIGN PORTFOLIOFOREIGN PORTFOLIO INVESTMENTFRAUDFRAUDSFREE MARKETFUND MANAGERSFUTURESGLOBAL EQUITYGLOBAL EQUITY MARKETSGLOBAL FINANCIAL MARKETSGLOBAL MARKETGLOBAL MARKETSGOOD GOVERNANCEGOVERNANCE STANDARDGOVERNANCE STANDARDSGOVERNMENT POLICIESHEDGE FUNDSHOLDINGHOUSINGHOUSING MARKETINCOMEINDIVIDUAL INVESTORSINFLATIONINSTITUTIONAL INVESTMENTINSTITUTIONAL INVESTORSINSTRUMENTINSURERSINTEREST RATESINTERNAL CONTROLSINTERNATIONAL CORPORATE GOVERNANCEINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL MARKETSINTERNATIONAL SECURITIESINTERNATIONAL SETTLEMENTSINVESTINGINVESTMENT BANKSINVESTMENT OPPORTUNITIESINVESTMENT RETURNSIRRATIONAL EXUBERANCEJURISDICTIONLACK OF TRANSPARENCYLEGAL FRAMEWORKLEGAL OBLIGATIONSLEGAL SYSTEMLIQUIDITYLIQUIDITY CRISISLOAN PORTFOLIOLOAN RECOVERYLOW-INCOMELOW-INCOME COUNTRIESMACROECONOMIC PERFORMANCEMARKET DISCIPLINEMARKET EFFICIENCYMARKET REGULATIONMARKET REGULATIONSMARKET REGULATORMARKET REGULATORSMARKET STRUCTUREMARKET SUPERVISIONMARKET VOLATILITYMICROCREDITMINORITY SHAREHOLDERSMONETARY FUNDMORAL IMPERATIVEMORTGAGEMORTGAGE-BACKED SECURITIESMUTUAL FUNDSNATIONAL STOCK EXCHANGENEW INVESTORSNEW PRODUCTSOIL PRICESOUTSTANDING LOANOWNERSHIPSPENSIONPENSION FUNDPENSION FUNDSPRIVATE EQUITYPRIVATE SECTOR BANKSPROSPERITYRAPID GROWTHREAL ESTATERECESSIONREFORM PROGRAMSREGULATORY BODYREGULATORY FRAMEWORKREGULATORY REGIMEREGULATORY SYSTEMRESERVE BANKRETURNRETURNSRISK MANAGEMENTRISK MANAGEMENT SYSTEMRISK MANAGEMENT SYSTEMSSALESSAVERSSAVINGSSECURITIESSECURITIES MARKETSECURITIES MARKET REGULATIONSSECURITIES MARKETSSELF REGULATIONSETTLEMENTSETTLEMENT SYSTEMSSHARE PRICESHARE PRICESSHAREHOLDERSHAREHOLDER ACTIVISMSPREADSTOCK EXCHANGESTOCK EXCHANGESSTOCK MARKETSTOCK MARKET INDEXSTOCK MARKET INDICESSTOCK MARKETSSTOCK PRICESSTOCKSSUPPLIERSSUPPLIERS OF CREDITSWAPSTAXTRADINGTRADING FLOORTRADING PLATFORMTRANSITION ECONOMIESTRUST FUNDUNEMPLOYMENTVALUATIONWorld Bank10.1596/11124