monitoring is costly governance is imperfect. If managerial hedging is detected, shareholders can seize the payoffs of the …

quality of governance) and the degree of market segmentation (depending on the level of ethnic fractionalization). The model …

We analyze whether or not the globalization of capital, ‘disciplines’ governments and improves governance. We … demonstrate that globalization affects governance, by increasing a country’s vulnerability to sudden capital flight. This … increased threat of capital flight can discipline governments and improve governance and welfare by placing countries in a …

’s moral hazard behavior (i.e., improvement in the level of governance) leads to a fall in the proportion of tied aid. We test …