The literature shows that good corporate governance generally pays for firms, for markets, and for countries. It is associated with a lower cost of capital, higher returns on equity, greater efficiency, and more favorable treatment of all stakeholders, although the direction of causality is not...

This study of how privatization and stabilization (hard budget constraints) affect enterprise behavior shows that privatized firms consistently outperform state enterprises in productivity growth. Total factor productivity improves in privatized firms, where there is also less overemployment...