Corporate governance and capital flows
Today’s financial regulation is founded on the assumption that more transparency, accountability, regulation, alignment of interests of directors with long-term objectives, less corruption makes the system safe. Thus, after the recent financial and economic crisis these themes are considered necessary to restore confidence in the financial markets, to reformulate the existing corporate governance systems and mechanisms that have been inadequate, and, finally, to rethink the relationship between ethics and economy. The announcement of setting a ceiling on executive remunerations (of financial institutions that receive aid from the government) coincides with the popular disapproval of the plans on the manager incentives. The so-called golden salaries of top managers raised a number of critical questions: considering the present economic recession is it correct award bonuses and privileges to managers? considering the manager-performance ratio is right that managers receive incentives even when the targets are not met? In the light of this debate the aim of this paper is to critically analyze existing corporate governance rules which are just born with the aim to regulate and control this type of problems. Thus, a possible solution might be to make existing rules more effective o in alternative to rethink corporate governance rule? The purpose of this research is to identify the factors determining the corporate governance systems and mechanisms in a global economy. This analysis confirms the economic theory that less open countries are characterised by stronger ownership’ restrictions and a weak corporate governance’s mechanism. Conversely, Open market and investment regimes are particularly powerful instruments to attract investment in general and FDI in particular.
|Date of creation:||2010|
|Date of revision:||2011|
|Publication status:||Published in Corporate governance. The international journal of business in society Number 3.Volume(2011): pp. 228-243|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James R. Markusen & Keith E. Maskus, 1999.
"Multinational Firms: Reconciling Theory and Evidence,"
NBER Working Papers
7163, National Bureau of Economic Research, Inc.
- James R. Markusen & Keith E. Maskus, 2001. "Multinational Firms: Reconciling Theory and Evidence," NBER Chapters, in: Topics in Empirical International Economics: A Festschrift in Honor of Robert E. Lipsey, pages 71-98 National Bureau of Economic Research, Inc.
- Drabek, Zdenek & Payne, Warren, 2002.
"The Impact of Transparency on Foreign Direct Investment,"
Journal of Economic Integration,
Center for Economic Integration, Sejong University, vol. 17, pages 777-810.
- Drabek, Z. & Payne, W., 1999. "The Impact of Transparency on Foreign Direct Investment," Papers 99-02, Stanford - Institute for Thoretical Economics.
- Drabek, Z. & Payne, W., 1999. "The Impact of Transparency on Foreign Direct Investment," Economic Research and Analysis Division (ERAD) 99-02, World Trade Organization. Economic Research and Analysis Division (ERAD).
- Drabek, Zdenek & Payne, Warren, 2001. "The impact of transparency on foreign direct investment," WTO Staff Working Papers ERAD-99-02, World Trade Organization (WTO), Economic Research and Statistics Division.
- di Giovanni, Julian, 2002.
"What Drives Capital Flows? The Case of Cross-Border M&A Activity and Financial Deepening,"
Center for International and Development Economics Research, Working Paper Series
qt7nq6d7wp, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
- di Giovanni, Julian, 2005. "What drives capital flows? The case of cross-border M&A activity and financial deepening," Journal of International Economics, Elsevier, vol. 65(1), pages 127-149, January.
- Julian di Giovanni & Contact: firstname.lastname@example.org, 2003. "What Drives Capital Flows? The Case of Cross-Border M&A Activity and Financial Deepening," International Trade 0303002, EconWPA.
- Markusen, James R. & Melvin, James R. & Maskus, Keith E. & Kaempfer, William, 1995. "International trade: theory and evidence," MPRA Paper 21989, University Library of Munich, Germany.
- Arturo Bris & Christos Cabolis, 2002. "Corporate Governance Convergence by Contract: Evidence from Cross-Border Mergers," Yale School of Management Working Papers ysm293, Yale School of Management, revised 01 Jan 2003.
- Flam, Harry & Helpman, Elhanan, 1987. "Vertical Product Differentiation and North-South Trade," American Economic Review, American Economic Association, vol. 77(5), pages 810-822, December.
- Evenett, S. J. & Keller, W., 1994.
"On Theories Explaining the Success of the Gravity Equation,"
9713, Wisconsin Madison - Social Systems.
- Simon J. Evenett & Wolfgang Keller, 2002. "On Theories Explaining the Success of the Gravity Equation," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 281-316, April.
- Simon J. Evenett & Wolfgang Keller, 1996. "On Theories Explaining the Success of the Gravity Equation," International Trade 9608001, EconWPA, revised 13 Jun 1997.
- Simon J. Evenett & Wolfgang Keller, 1998. "On Theories Explaining the Success of the Gravity Equation," NBER Working Papers 6529, National Bureau of Economic Research, Inc.
- Yongcheol Shin & Laura Serlenga, 2007. "Gravity models of intra-EU trade: application of the CCEP-HT estimation in heterogeneous panels with unobserved common time-specific factors," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 361-381.
- Luiz de Mello, 1997. "Foreign direct investment in developing countries and growth: A selective survey," Journal of Development Studies, Taylor & Francis Journals, vol. 34(1), pages 1-34.
- Eduardo Fernández-Arias & Ricardo Hausmann, 2000.
"Is FDI a Safer Form of Financing?,"
Research Department Publications
4201, Inter-American Development Bank, Research Department.
- Alesina, Alberto & Dollar, David, 2000.
"Who Gives Foreign Aid to Whom and Why?,"
Journal of Economic Growth,
Springer, vol. 5(1), pages 33-63, March.
- Alberto Alesina & David Dollar, 1998. "Who Gives Foreign Aid to Whom and Why?," NBER Working Papers 6612, National Bureau of Economic Research, Inc.
- Dollar, David & Alesina, Alberto, 2000. "Who Gives Foreign Aid to Whom and Why?," Scholarly Articles 4553020, Harvard University Department of Economics.
- I-Hui Cheng & Howard J. Wall, 2004.
"Controlling for heterogeneity in gravity models of trade and integration,"
1999-010, Federal Reserve Bank of St. Louis.
- I-Hui Cheng & Howard J. Wall, 2005. "Controlling for heterogeneity in gravity models of trade and integration," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 49-63.
- repec:idb:wpaper:416 is not listed on IDEAS
- Giuseppina Maria Chiara Talamo, 2009. "FDI, Mode of Entry and Corporate Governance," Chapters, in: Geography, Structural Change and Economic Development, chapter 2 Edward Elgar Publishing.
- Markusen, James R. & Venables, Anthony J., 1999.
"Foreign direct investment as a catalyst for industrial development,"
European Economic Review,
Elsevier, vol. 43(2), pages 335-356, February.
- James R. Markusen & Anthony J. Venables, 1997. "Foreign Direct Investment as a Catalyst for Industrial Development," NBER Working Papers 6241, National Bureau of Economic Research, Inc.
- Egger, Peter, 2000.
"A note on the proper econometric specification of the gravity equation,"
Elsevier, vol. 66(1), pages 25-31, January.
- Peter Egger, "undated". "A Note on the Proper Econometric Specification of the Gravity Equation," WIFO Working Papers 108, WIFO.
- Carlin, Wendy & Mayer, Colin, 2003.
"Finance, investment, and growth,"
Journal of Financial Economics,
Elsevier, vol. 69(1), pages 191-226, July.
- Erik Berglof & Ernst-Ludwig von Thadden, 1999.
"The Changing Corporate Governance Paradigm: Implications for Transition and Developing Countries,"
William Davidson Institute Working Papers Series
263, William Davidson Institute at the University of Michigan.
- Erik BERGLÖF & Ernst-Ludwig VON THADDEN, 1999. "The Changing Corporate Governance Paradigm : Implications for Transition and Developing Countries," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9912, Université de Lausanne, Faculté des HEC, DEEP.
- Patrick Bolton & Marco Becht & Alisa Röell, 2002.
"Corporate Governance and Control,"
NBER Working Papers
9371, National Bureau of Economic Research, Inc.
- James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 169-189, Spring.
- Loungani, Prakash & Mody, Ashoka & Razin, Assaf, 2002. "The Global Disconnect: The Role of Transactional Distance and Scale Economies in Gravity Equations," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 526-543, December.
- James R. Markusen & Keith E. Maskus, 2001. "General-Equilibrium Approaches to the Multinational Firm: A Review of Theory and Evidence," NBER Working Papers 8334, National Bureau of Economic Research, Inc.
- Chang, Ha-Joon & Park, Hong-Jae & Yoo, Chul Gyue, 1998. "Interpreting the Korean Crisis: Financial Liberalisation, Industrial Policy and Corporate Governance," Cambridge Journal of Economics, Oxford University Press, vol. 22(6), pages 735-746, November.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:35853. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.