This paper uses a new data-set to examine how internal capital markets and foreign ownership affect investment. Our data allow us to compare investment behaviour of listed subsidiaries with stand-alone firms while controlling for investment opportunities of parent and subsidiary firms. We...

Corporate governance is one of the most topical and controversial areas of business and finance. This article provides an overview of the questions that it raises and proposed policy responses. It points to the diversity in systems of corporate governance around the world, the apparently...

A significant recent development has been the extension of market processes to activities which were previously provided by the public sector. A central feature of newly privatised markets is the emergence of widespread forms of contracting. Explicit contracting is used where in the past...

In broad terms, recent theory suggests that the increased emphasis that has been placed in many countries on "market forces' may be misplaced. The failure of competition to establish desirable outcomes provides a prima facie case for government intervention. At the same time, it has become clear...

Clearly, the UK government's privatization program has been a large-scale exercise in new capital issues. There are 3 main considerations that may have influenced the form of the asset sales: 1. extent of ownership, 2. costs of sale, and 3. disruption to markets. Little evidence exists that the...