- Series Information
- The Oxford Handbook of Economic and Institutional Transparency
- List of Figures and Tables
- List of Contributors
- The Multifaceted Concept of Transparency
- Constitutional Transparency
- Monetary Policy Transparency
- Fiscal Policy Transparency
- Transparent and Unique Sovereign Default Risk Assessment
- Transparency and Competition Policy in an Imperfectly Competitive World
- Transparency in International Trade Policy
- Transparency of Climate Change Policies, Markets, and Corporate Practices
- Transparency of Human Resource Policy
- Transparency of Innovation Policy
- Labor Market Transparency
- Transparency of Financial Regulation
- Price Transparency and Market Integration
- Transparency and Inward Investment Incentives
- Transparency and Corruption
- Multinational Corporations’ Relationship with Political Actors: Transparency versus Opacity
- Corporate Governance and Optimal Transparency
- Transparency Differences at the Top of the Organization: Market-Pull versus Strategic Hoarding Forces
- Governance Transparency and the Institutions of Capitalism: Implications for Finance
- Transparency and Executive Compensation
- Transparency and Disclosure in the Global Microfinance Industry
- Accounting Transparency and International Standard Setting
- Transparency of Fair Value Accounting and Tax
- Transparency of Corporate Risk Management and Performance
- Stress Testing, Transparency, and Uncertainty in European Banking: What Impacts?
- Author Index
- Subject Index
Abstract and Keywords
This chapter explores the relationship between governance transparency and institutions of capitalism. It considers two major components of governance transparency in a country: disclosure regarding self-dealing and disclosure regarding ultimate corporate ownership. It also examines the effects of governance transparency on some of the fundamental mechanisms of capitalism, including transaction costs and the institutions of business exchange. Some evidence of the importance of governance transparency in the structure of capital markets is presented. The chapter reviews how governance transparency is measured and how it influences the culture of equity, the cost of equity, participation in stock markets, and a nation’s financial architecture.
Keywords: capitalism, capital markets, corporate ownership, corporate control, disclosure, equity, financial architecture, governance institutions, governance transaction costs, self-dealing, stock markets, transparency
Raj Aggarwal, Frank C. Sullivan Professor of International Business and Finance in the Department of Finance at The University of Akron, Akron, OH.
John W. Goodell, Associate Professor of Finance in the Department of Finance at The University of Akron, Akron, OH.
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