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Financial Globalization, Corporate Governance, and Eastern Europe

  • Rene M. Stulz

For many countries, the most significant barriers to trade in financial assets have been knocked down. Yet, the financial world is not flat because poor governance prevents firms from being widely held and from taking full advantage of financial globalization. Poor governance has implications for corporate finance as well as for macroeconomics. I show that poor governance in Eastern Europe is accompanied, as expected, by high corporate ownership concentration, low firm valuation, poor financial development, and low foreign participation.

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File URL: http://www.nber.org/papers/w11912.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11912.

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Date of creation: Jan 2006
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Publication status: published as Stulz, Rene M. "Financial Globalization, Corporate Governance and Eastern Europe." Financial Development, Integration and Stability: Evidence from Central, Eastern and South-Eastern Europe (2006): 16-40.
Handle: RePEc:nbr:nberwo:11912
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