Capaul, Mierta2012-08-132012-08-132003-08https://hdl.handle.net/10986/11293The World Bank's assessments of corporate governance practices in 25 countries across five continents have revealed a general commitment to comply with international principles. But the necessary legal changes are slow and subject to political compromise. Moreover, most countries have a poor track record in enforcing existing laws and regulations. Expropriation of minority shareholders continues to be a problem around the world. The corporate governance assessments show that choice can facilitate reform. Allowing different models of corporate governance to coexist permits investors with varying risk profiles to choose the appropriate market and company to invest in and allows market forces to pick the winners. When companies have the choice of listing their shares on a stock market segment with stricter corporate governance rules or of complying with a code of best practice, they can use this option to signal to investors that they are different. While establishing a corporate governance market segment appears to be an attractive option only for middle-income countries, codes of best practice seem to be important regardless of a country's level of development.CC BY 3.0 IGOACCOUNTINGACQUISITIONADVANCED ECONOMIESARBITRAGEARBITRATIONBOARD MEMBERSCOMMUNICATIONS DEVELOPMENTCONSTITUENCYCONTROLLING SHAREHOLDERCONTROLLING SHAREHOLDERSCORPORATE CONTROLCORPORATE FINANCECORPORATE GOVERNANCECORPORATE GOVERNANCE CODECORPORATE GOVERNANCE FRAMEWORKCORPORATE GOVERNANCE LAWSCORPORATE GOVERNANCE STANDARDSCORPORATE LAWCORPORATE LAW REFORMCOST OF CAPITALCOURT SYSTEMDISCLOSUREENFORCEMENT MECHANISMENTREPRENEURSEQUAL TREATMENTEXCHANGE COMMISSIONEXPROPRIATIONEXPROPRIATION OF MINORITY SHAREHOLDERSEXTERNAL FINANCEFINANCIAL INSTITUTIONFIRMSFUTURESGOOD CORPORATE GOVERNANCEGOVERNANCE PRACTICESINCOMEINCOME FLOWSINSIDER DEALINGINSIDER TRADINGINTERNATIONAL ACCOUNTING STANDARDSINTERNATIONAL INVESTORSINVESTMENT CLIMATEINVESTOR PROTECTIONJUDICIAL ENFORCEMENTJUDICIAL SYSTEMLARGE ENTERPRISELEGAL FRAMEWORKSLIQUIDITYLISTED COMPANIESMAJORITY SHAREHOLDERMAJORITY SHAREHOLDERSMARKET PRACTITIONERSMERGERMIDDLE-INCOME COUNTRIESMINORITY SHAREHOLDERSMONETARY FUNDNEW MARKETOUTSIDE INVESTORSPENSIONPENSION FUNDSPORTFOLIOPRIVATIZATIONPUBLIC CONTROVERSYPUBLIC POLICYREGULATORSREGULATORY AGENCIESREGULATORY FRAMEWORKREGULATORY FRAMEWORKSRISK PROFILESRULE OF LAWSECURITIESSECURITIES LAWSECURITIES LAWSSECURITIES MARKETSSECURITIES REGULATORSECURITIES REGULATORSSHARE OF CAPITALSHARE PRICESHAREHOLDERSHAREHOLDER PROTECTIONSHAREHOLDER RIGHTSSMALLER COMPANIESSTATE REVENUESSTATUTORY REQUIREMENTSSTOCK EXCHANGESTOCK MARKETSUPPLIERSTAKEOVERTAKEOVERSTARGET COMPANYTRANSACTIONTRANSACTION COSTSTRANSITION ECONOMIESTRANSPARENCYVALUATIONVOTINGWEAK CORPORATE GOVERNANCEWEAK ENFORCEMENTWorld Bank10.1596/11293