ABSTRACT
EVER SINCE BERLE AND MEANS (1932) STATED THAT in the modern corporation hired managers have enough discretion for corporate plundering, the issue of separating ownership from control and its resulting impact on corporate performance has been placed high on the agenda of economists. Globalizing product and financial markets have recently triggered renewed interest in the link between corporate governance
and performance among academics and business press. As firms face new challenges from increased cross-border competition, pressures to adapt to an internationally integrated environment mount.The question arises naturally whether established systems of corporate finance and corporate governance are still appropriate to cope with the challenges ahead.1
