ABSTRACT
This chapter examines the implications of the deregulation of finance and the globalization of capital markets, with a focus on the growth of equity markets. It presents the movement towards the globalization of regulation that is accompanying the globalization of markets. The chapter examines the impact of the Organization for Economic Cooperation and Development (OECD) principles of corporate governance. The experience of globalization represents a profound reconfiguration of the world economy compared to earlier periods of internationalization. A vital dimension of the increasing financialization of the world economy is the growth of capital markets, and especially the vast growth of equity markets, where volatility has been experienced at its furthest extremities. Equity finance is used much less frequently during restructuring or to finance new product or project development. The OECD Principles of Corporate Governance were first introduced in 1999 and have gone through major revisions in 2004 and 2015.
