THE INSTITUTIONAL FRAMEWORK FOR EFFECTIVE CORPORATE GOVERNANCE

As we have seen earlier, developing countries and transition economies lack the required framework to put in place best corporate governance practices. The following are the desiderata for such a framework:

  1. Property rights: It is essential that property rights, laws and regulations establish simple and straightforward standards to specify clearly who owns what and how these rights can be combined or exchanged (for example, through commercial transactions), and standards for recording required information (such as the legal owners of property, has the property been used as loan collateral, etc.) in a timely and cost-efficient manner into an integrated, publicly accessible data base. ...

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