Morten Balling, Elizabeth Hennessy, Richard O'Brian
1 Department of Business Studies, Aarhus School of Business, Aarhus BSS, Aarhus University2 Finance Research Group, Aarhus School of Business, Aarhus BSS, Aarhus University3 Department of Economics and Business Economics, Aarhus BSS, Aarhus University4 Department of Economics and Business Economics, Aarhus BSS, Aarhus University
In the article, the author gives an overview of the many different aspects of corporate governance to discuss at a conference in Budapest in May 1997 arranged by Société Universitaire Européenne de Recherches Financières (SUERF). Among the subjects dealt with are the relationsship between the changing ownership structures in Europe and governance, the influence exerted by shareholders in financial institutions on the management of those institutions, the role of banks as shareholders in non-financial companies in different European countries, and the different types of transactions through which transfer of ownership and influence take place. In the transition economies of Central and Eastern Europe, transfer of ownership to private shareholders takes place through big privatization arrangements which imply far-reaching changes of the economic systems, but there are also many important cases of privatization in Western Europe. Almost everywhere, the role of institutional shareholders is increasing. The internationalization proces implies that also the role of the governance systems changes the incentives for corporate managers to demonstrate good financial performance, and there seems to be signs of system convergence. In Western Europe affected by the globalization of the economies and the implementation of the Internal Market. In Central and Eastern Europe as a result of the internationalization process and the gradual adaption of the financial regulatory systems to the principles reflected in EU directives.
Corporate Governance, Financial Markets and Global Convergence, 1998