Reform, Financial Systems and Legal Frameworks
The CRC Series on Competition, Regulation and Development
Edited by Thankom Gopinath Arun and John Turner
The subject of corporate governance is concerned with assuring providers of capital (shareholders, creditors and employees) that their investment will not be misused or misappropriated by corporate insiders such as large shareholders or managers. This book analyses the complex relationship between corporate governance and economic development by mainly focusing on the reform of corporate governance, the role of the legal system in corporate governance, and the interconnections between corporate governance and the financial system. Economic liberalization has increased the economic power of many firms, which may have had a negative impact both on the welfare of society and economic efficiency. Consequently, this has enhanced the need for an appropriate legal and regulatory framework, which would help to protect capital providers and safeguard consumers. Financial market liberalization, an integral part of economic reform, has opened up a renewed focus on the issue of regulation, corporate governance and development. However, research and policy dialogue on the interrelationship between these three themes have been quite compartmentalized both in terms of disciplinary and thematic boundaries. This has minimized the scope of the discussions as to what extent regulation and corporate governance are instrumental in safeguarding investments, both financial and human, and leads to wider questions on international development both in terms of stability and sustainability. The initial idea for this book emerged from a one-day multi-disciplinary conference entitled ‘Competition, Regulation and Development’ organized by the Centre on Regulation and Competition at the University of Manchester in November 2007. The conference explored the role of...