ABSTRACT

However, for EMs, CG is an important part of the economic and social development processes and the need for CG in EMs extends far beyond resolving problems resulting from the separation of ownership and control. Yet, in most of these countries, institutional framework is not well developed or is performing weakly, creating signifi cant inconsistencies and uncertainties, and, thus most of the EMs are still dealing with very fundamental issues such as property rights, the abuse of minority shareholders, contract violations, asset stripping, and self-dealing (OECD, 2004a; CIPE, 2002).