Stijn Claessens | Yale University (original) (raw)
Papers by Stijn Claessens
World Bank discussion papers, Jan 31, 2000
All rights reserved Manufactured in the United States of America First printing January 2000 Disc... more All rights reserved Manufactured in the United States of America First printing January 2000 Discussion Papers present results of country analysis or research that are circulated to encourage discussion and comment within the development community. The typescript of this paper therefore has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors. Some sources cited in this paper may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. The World Bank encourages dissemination of its work and will normally grant permission promptly.
This Working Paper should not be reported as representing the views of the IMF. The views express... more This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. While theory suggests that stakeholders' relative powers affect a firm's overall performance, traditionally the impacts of different stakeholders' rights have been analyzed independently. Using U.S. data over 1972-1993, we find that financial liberalization positively, but greater workers' rights ambiguously impact overall state growth. At the industry level, financial liberalization does not promote industries that are more dependent on external financing, but employment protection does promote more knowledge-intensive industries. This suggests that financial liberalization reallocates resources more efficiently across sectors, while employment protection encourages more sector-specific, human capital investments. Overall, our results provide support for a stakeholders' view of corporate governance.
This Working Paper should not be reported as representing the views of the IMF. The views express... more This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. Studying a large number of banks in various countries between 1999 and 2006, we document that foreign banks perform better when from a high income country, when host country competition is limited, and when they are large and rely more on deposits for funding. Foreign banks' performance improves over time, possibly as they adapt, and is better when the home country is geographical or cultural (but not institutional) close to the host country. These findings show the importance of controlling for heterogeneity among foreign banks and help reconcile some contradictory results found in the literature on foreign banks' performance.
This Working Paper should not be reported as representing the views of the IMF. The views express... more This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper studies international financial integration analyzing firms from various countries raising capital, trading equity, and/or cross-listing in major world stock markets. Using a large sample of 39,517 firms from 111 countries covering the period 1989-2000, we find that, although international financial integration increases substantially over this period, only relatively few countries and firms actively participate in international markets. Firms more likely to internationalize are from larger and more open economies, with higher income, better macroeconomic policies, and worse institutional environments. These firms tend to be larger, grow faster, and have higher returns and more foreign sales. While changes occur with internationalization, these firm attributes are present before internationalization takes place. The results suggest that international financial integration will likely remain constrained by country and firm characteristics.
The newly emerging macroeconomic management paradigm is one in which monetary policy is primarily... more The newly emerging macroeconomic management paradigm is one in which monetary policy is primarily aimed at price stability and macroprudential policies are primarily aimed at financial stability. The two policies can interact though. This paper first examines the conduct of both policies in the presence of such interactions. While interactions can enhance or reduce the effectiveness of each policy in achieving its objectives, there is no great need for coordination in most cases. There are exceptions though, notably when monetary or macroprudential policies are constrained. And the presence of interactions imposes some demands on institutional designs. The paper next reviews specific coordination issues for small open economies, also in light of how monetary policy in major advanced countries affects the global financial cycle, and in turn local financial conditions, with associated risks to financial and economic stability. Given the limited prospect for international coordination of monetary policy and the practical problems with coordinating macroprudential policies, small open economies may need to, besides rethinking their monetary and exchange rate policies, use specific macroprudential policies to deal risk coming from international factors. And countries may want to use capital flow management tools, considering carefully how various macroprudential and capital flow management tools interact and considering the longer-term benefits from financial integration. Paper prepared for IEA-BCU Roundtable on "Capital Flows, Capital Controls and Monetary Policy," Montevideo, December 7th and 8th, 2013. The paper draws in part on joint work with colleagues and other work at the IMF. The views expressed here are those of the author and should not be attributed to the IMF, its Executive Board, or its management.
ADB economics working paper series, Nov 1, 2017
for extensive help with the data. This paper was one of the references used in the Asian Economic... more for extensive help with the data. This paper was one of the references used in the Asian Economic Integration Report 2017 theme chapter entitled "The Era of Financial Interconnectedness: How Can Asia Strengthen Financial Resilience?" A similar version of this paper was also issued as IMF Working Paper 15/127. The opinions expressed herein are solely the responsibility of the authors and should not be interpreted as reflecting those of the IMF, the Bank for International Settlements or anyone else associated with these institutions or their policies.
IMF working paper, 2007
This paper studies international financial integration analyzing firms from various countries rai... more This paper studies international financial integration analyzing firms from various countries raising capital, trading equity, and/or cross-listing in major world stock markets. Using a large sample of 39,517 firms from 111 countries covering the period 1989-2000, we find that, although international financial integration increases substantially over this period, only relatively few countries and firms actively participate in international markets. Firms more likely to internationalize are from larger and more open economies, with higher income, better macroeconomic policies, and worse institutional environments. These firms tend to be larger, grow faster, and have higher returns and more foreign sales. While changes occur with internationalization, these firm attributes are present before internationalization takes place. The results suggest that international financial integration will likely remain constrained by country and firm characteristics.
This paper assesses the impact of the geographic diversification of bank holding company (BHC) as... more This paper assesses the impact of the geographic diversification of bank holding company (BHC) assets across the United States on their market valuations. Using two novel identification strategies based on the dynamic process of interstate bank deregulation, we find that exogenous increases in geographic diversity reduce BHC valuations. These findings are consistent with the view that geographic diversity makes it more difficult for shareholders and creditors to monitor firm executives, allowing corporate insiders to extract larger private benefits from firms.
Development Economics (ABCDE) is a forum for discussion and debate of important policy issues fac... more Development Economics (ABCDE) is a forum for discussion and debate of important policy issues facing developing countries. The conferences emphasize the contribution that empirical economic research can make to understanding development processes and to formulating sound development policies. Conference papers are written by researchers in and outside the World Bank. The conference series was started in 1989. Conference papers are reviewed by the editors and are also subject to internal and external peer review. Some papers were revised after the conference, to reflect the comments made by discussants or from the floor, while most discussants' comments were not revised. As a result, discussants' comments may refer to elements of the paper that no longer exist in their original form. Unless otherwise noted, participants' affiliations identified in this volume are as of the time of the conference, June 22-24, 2009. The planning and organization of the June 2009 conference was a joint effort by the Government of the Republic of Korea, the Korea Development Institute (KDI), and the World Bank. We gratefully acknowledge timely and valuable contributions made by all the members of the Steering Committee and several anonymous reviewers. We would also like to thank Alan Gelb and Aehyung Kim for their insightful advice and Leita Jones, conference organizer, whose excellent organizational skills helped to ensure a successful conference. Finally, we thank the editorial staff from the World Bank's Office of the Publisher for their efforts in pulling this volume together.
Routledge eBooks, Mar 11, 2002
Volatility and Contagion in a Recentevents in EastAsia highlighted the risks of weak Financially ... more Volatility and Contagion in a Recentevents in EastAsia highlighted the risks of weak Financially Integrated World financial institutions and distorted incentives in a L.essons from East Asia's financially integrated world. These weaknesses led to two
Elsevier eBooks, 2013
This Working Paper should not be reported as representing the views of the IMF. The views express... more This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
IMF Economic Review, Feb 12, 2019
BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for... more BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for International Settlements, and from time to time by other economists, and are published by the Bank. The papers are on subjects of topical interest and are technical in character. The views expressed in them are those of their authors and not necessarily the views of the BIS. This publication is available on the BIS website (www.bis.org).
Review of Finance, Sep 6, 2016
Following recent crises, cross-border capital flows have declined considerably, and many advanced... more Following recent crises, cross-border capital flows have declined considerably, and many advanced countries' banks are retrenching. At the same time, banks from emerging and developing countries continue to expand abroad, and banking has become more regional. Research highlights that long-term debt flows are less volatile and that foreign banks with larger presence, more domestic funding, and closer relationships provide more finance and share risks better. While ongoing changes in global banking influence its overall benefits, the crises also revealed the need for a consistent framework for supervising and resolving globally active banks, with the European Banking Union an important model.
Social Science Research Network, 2003
Corporate governance has received much attention in recent years, partly due to the Asian financi... more Corporate governance has received much attention in recent years, partly due to the Asian financial crisis. We review the literature on corporate governance issues in Asia to develop region-specific and general lessons. Much attention has been given to poor corporate sector performance, but most studies do not suggest that Asian firms were badly run. The literature does confirm the limited protection of minority rights in Asia, allowing controlling shareholders to expropriate minority shareholders. Agency problems have been exacerbated by low corporate transparency, associated with rent-seeking and relationship-based transactions, extensive group structures and diversification, and risky financial structures. The controlling shareholder bears some of agency costs in the form of share price discounts and expenditures on monitoring, bonding and reputation building. The Asian financial crisis further showed that conventional and alternative corporate governance mechanisms can have limited effectiveness in systems with weak institutions and poor property rights. Overall, the understanding of the determinants of firm organizational structures, corporate governance practices and outcomes remains limited, however.
Palgrave Macmillan UK eBooks, 2000
The association between corporate performance, managers and incentives is a much studied topic. O... more The association between corporate performance, managers and incentives is a much studied topic. One strand of literature has been motivated by the notion that financial incentives for managers, in the form of performance contracts, equity ownership and so on, could help align the interest of owners and managers: that is, reduce principal-agent problems, and thereby improve corporate performance and increase market valuation. This topic has been studied extensively (for example, see Murphy, 1985, for the effect of performance contracts on market valuation of firms in the United States, and World Bank, 1996b, for a review of performance contracts for state enterprises). The general finding is that these incentives do not work well for state enterprises, especially in developing countries (and the focus of improving state enterprises’ performance has subsequently shifted to privatization), but work reasonably well for private firms in developed market economies (Jensen and Zimmermann, 1985). Recent theoretical models (Aghion et al., 1994; Blanchard and Aghion, 1996) build on the existing literature and investigate the importance of incentive systems for executive performance in the context of transition economies. Some empirical evidence on the link between executive compensation and enterprise productivity growth during the initial transition period is becoming available (see Jones and Kato, 1996, for a study of Bulgarian firms).
Social Science Research Network, 2014
We identify current challenges for creating stable, yet efficient financial systems using lessons... more We identify current challenges for creating stable, yet efficient financial systems using lessons from recent and past crises. Reforms need to start from three tenets: adopting a system-wide perspective explicitly aimed at addressing market failures; understanding and incorporating into regulations agents' incentives so as to align them better with societies' goals; and acknowledging that risks of crises will always remain, in part due to (unknown) unknowns-be they tipping points, fault lines, or spillovers. Corresponding to these three tenets, specific areas for further reforms are identified. Policy makers need to resist, however, fine-tuning regulations: a "do not harm" approach is often preferable. And as risks will remain, crisis management needs to be made an integral part of system design, not relegated to improvisation after the fact.
The authors would like to thank Melsa Ararat and James Spellman for their useful suggestions.
RePEc: Research Papers in Economics, Dec 1, 1997
... A DRAFT Managers, Incentives and Corporate Performance: Evidence from the Czech RepublicStijn... more ... A DRAFT Managers, Incentives and Corporate Performance: Evidence from the Czech RepublicStijn Claessens Simeon Djankov* December 5, 1997 ... This has been studied extensively (for example, Murphy, 1985 for the effect of performance contracts on market valuation of ...
RePEc: Research Papers in Economics, Oct 1, 2002
meeting for their comments. They thank François Bourguignon and three referees for their extensiv... more meeting for their comments. They thank François Bourguignon and three referees for their extensive comments, Ying Lin (World Bank) for his excellent work with the data, and Brian Deese for other research help. The article was previously entitled: "Will HIPC Matter? The Debt Game
World Bank discussion papers, Jan 31, 2000
All rights reserved Manufactured in the United States of America First printing January 2000 Disc... more All rights reserved Manufactured in the United States of America First printing January 2000 Discussion Papers present results of country analysis or research that are circulated to encourage discussion and comment within the development community. The typescript of this paper therefore has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors. Some sources cited in this paper may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. The World Bank encourages dissemination of its work and will normally grant permission promptly.
This Working Paper should not be reported as representing the views of the IMF. The views express... more This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. While theory suggests that stakeholders' relative powers affect a firm's overall performance, traditionally the impacts of different stakeholders' rights have been analyzed independently. Using U.S. data over 1972-1993, we find that financial liberalization positively, but greater workers' rights ambiguously impact overall state growth. At the industry level, financial liberalization does not promote industries that are more dependent on external financing, but employment protection does promote more knowledge-intensive industries. This suggests that financial liberalization reallocates resources more efficiently across sectors, while employment protection encourages more sector-specific, human capital investments. Overall, our results provide support for a stakeholders' view of corporate governance.
This Working Paper should not be reported as representing the views of the IMF. The views express... more This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. Studying a large number of banks in various countries between 1999 and 2006, we document that foreign banks perform better when from a high income country, when host country competition is limited, and when they are large and rely more on deposits for funding. Foreign banks' performance improves over time, possibly as they adapt, and is better when the home country is geographical or cultural (but not institutional) close to the host country. These findings show the importance of controlling for heterogeneity among foreign banks and help reconcile some contradictory results found in the literature on foreign banks' performance.
This Working Paper should not be reported as representing the views of the IMF. The views express... more This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper studies international financial integration analyzing firms from various countries raising capital, trading equity, and/or cross-listing in major world stock markets. Using a large sample of 39,517 firms from 111 countries covering the period 1989-2000, we find that, although international financial integration increases substantially over this period, only relatively few countries and firms actively participate in international markets. Firms more likely to internationalize are from larger and more open economies, with higher income, better macroeconomic policies, and worse institutional environments. These firms tend to be larger, grow faster, and have higher returns and more foreign sales. While changes occur with internationalization, these firm attributes are present before internationalization takes place. The results suggest that international financial integration will likely remain constrained by country and firm characteristics.
The newly emerging macroeconomic management paradigm is one in which monetary policy is primarily... more The newly emerging macroeconomic management paradigm is one in which monetary policy is primarily aimed at price stability and macroprudential policies are primarily aimed at financial stability. The two policies can interact though. This paper first examines the conduct of both policies in the presence of such interactions. While interactions can enhance or reduce the effectiveness of each policy in achieving its objectives, there is no great need for coordination in most cases. There are exceptions though, notably when monetary or macroprudential policies are constrained. And the presence of interactions imposes some demands on institutional designs. The paper next reviews specific coordination issues for small open economies, also in light of how monetary policy in major advanced countries affects the global financial cycle, and in turn local financial conditions, with associated risks to financial and economic stability. Given the limited prospect for international coordination of monetary policy and the practical problems with coordinating macroprudential policies, small open economies may need to, besides rethinking their monetary and exchange rate policies, use specific macroprudential policies to deal risk coming from international factors. And countries may want to use capital flow management tools, considering carefully how various macroprudential and capital flow management tools interact and considering the longer-term benefits from financial integration. Paper prepared for IEA-BCU Roundtable on "Capital Flows, Capital Controls and Monetary Policy," Montevideo, December 7th and 8th, 2013. The paper draws in part on joint work with colleagues and other work at the IMF. The views expressed here are those of the author and should not be attributed to the IMF, its Executive Board, or its management.
ADB economics working paper series, Nov 1, 2017
for extensive help with the data. This paper was one of the references used in the Asian Economic... more for extensive help with the data. This paper was one of the references used in the Asian Economic Integration Report 2017 theme chapter entitled "The Era of Financial Interconnectedness: How Can Asia Strengthen Financial Resilience?" A similar version of this paper was also issued as IMF Working Paper 15/127. The opinions expressed herein are solely the responsibility of the authors and should not be interpreted as reflecting those of the IMF, the Bank for International Settlements or anyone else associated with these institutions or their policies.
IMF working paper, 2007
This paper studies international financial integration analyzing firms from various countries rai... more This paper studies international financial integration analyzing firms from various countries raising capital, trading equity, and/or cross-listing in major world stock markets. Using a large sample of 39,517 firms from 111 countries covering the period 1989-2000, we find that, although international financial integration increases substantially over this period, only relatively few countries and firms actively participate in international markets. Firms more likely to internationalize are from larger and more open economies, with higher income, better macroeconomic policies, and worse institutional environments. These firms tend to be larger, grow faster, and have higher returns and more foreign sales. While changes occur with internationalization, these firm attributes are present before internationalization takes place. The results suggest that international financial integration will likely remain constrained by country and firm characteristics.
This paper assesses the impact of the geographic diversification of bank holding company (BHC) as... more This paper assesses the impact of the geographic diversification of bank holding company (BHC) assets across the United States on their market valuations. Using two novel identification strategies based on the dynamic process of interstate bank deregulation, we find that exogenous increases in geographic diversity reduce BHC valuations. These findings are consistent with the view that geographic diversity makes it more difficult for shareholders and creditors to monitor firm executives, allowing corporate insiders to extract larger private benefits from firms.
Development Economics (ABCDE) is a forum for discussion and debate of important policy issues fac... more Development Economics (ABCDE) is a forum for discussion and debate of important policy issues facing developing countries. The conferences emphasize the contribution that empirical economic research can make to understanding development processes and to formulating sound development policies. Conference papers are written by researchers in and outside the World Bank. The conference series was started in 1989. Conference papers are reviewed by the editors and are also subject to internal and external peer review. Some papers were revised after the conference, to reflect the comments made by discussants or from the floor, while most discussants' comments were not revised. As a result, discussants' comments may refer to elements of the paper that no longer exist in their original form. Unless otherwise noted, participants' affiliations identified in this volume are as of the time of the conference, June 22-24, 2009. The planning and organization of the June 2009 conference was a joint effort by the Government of the Republic of Korea, the Korea Development Institute (KDI), and the World Bank. We gratefully acknowledge timely and valuable contributions made by all the members of the Steering Committee and several anonymous reviewers. We would also like to thank Alan Gelb and Aehyung Kim for their insightful advice and Leita Jones, conference organizer, whose excellent organizational skills helped to ensure a successful conference. Finally, we thank the editorial staff from the World Bank's Office of the Publisher for their efforts in pulling this volume together.
Routledge eBooks, Mar 11, 2002
Volatility and Contagion in a Recentevents in EastAsia highlighted the risks of weak Financially ... more Volatility and Contagion in a Recentevents in EastAsia highlighted the risks of weak Financially Integrated World financial institutions and distorted incentives in a L.essons from East Asia's financially integrated world. These weaknesses led to two
Elsevier eBooks, 2013
This Working Paper should not be reported as representing the views of the IMF. The views express... more This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
IMF Economic Review, Feb 12, 2019
BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for... more BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for International Settlements, and from time to time by other economists, and are published by the Bank. The papers are on subjects of topical interest and are technical in character. The views expressed in them are those of their authors and not necessarily the views of the BIS. This publication is available on the BIS website (www.bis.org).
Review of Finance, Sep 6, 2016
Following recent crises, cross-border capital flows have declined considerably, and many advanced... more Following recent crises, cross-border capital flows have declined considerably, and many advanced countries' banks are retrenching. At the same time, banks from emerging and developing countries continue to expand abroad, and banking has become more regional. Research highlights that long-term debt flows are less volatile and that foreign banks with larger presence, more domestic funding, and closer relationships provide more finance and share risks better. While ongoing changes in global banking influence its overall benefits, the crises also revealed the need for a consistent framework for supervising and resolving globally active banks, with the European Banking Union an important model.
Social Science Research Network, 2003
Corporate governance has received much attention in recent years, partly due to the Asian financi... more Corporate governance has received much attention in recent years, partly due to the Asian financial crisis. We review the literature on corporate governance issues in Asia to develop region-specific and general lessons. Much attention has been given to poor corporate sector performance, but most studies do not suggest that Asian firms were badly run. The literature does confirm the limited protection of minority rights in Asia, allowing controlling shareholders to expropriate minority shareholders. Agency problems have been exacerbated by low corporate transparency, associated with rent-seeking and relationship-based transactions, extensive group structures and diversification, and risky financial structures. The controlling shareholder bears some of agency costs in the form of share price discounts and expenditures on monitoring, bonding and reputation building. The Asian financial crisis further showed that conventional and alternative corporate governance mechanisms can have limited effectiveness in systems with weak institutions and poor property rights. Overall, the understanding of the determinants of firm organizational structures, corporate governance practices and outcomes remains limited, however.
Palgrave Macmillan UK eBooks, 2000
The association between corporate performance, managers and incentives is a much studied topic. O... more The association between corporate performance, managers and incentives is a much studied topic. One strand of literature has been motivated by the notion that financial incentives for managers, in the form of performance contracts, equity ownership and so on, could help align the interest of owners and managers: that is, reduce principal-agent problems, and thereby improve corporate performance and increase market valuation. This topic has been studied extensively (for example, see Murphy, 1985, for the effect of performance contracts on market valuation of firms in the United States, and World Bank, 1996b, for a review of performance contracts for state enterprises). The general finding is that these incentives do not work well for state enterprises, especially in developing countries (and the focus of improving state enterprises’ performance has subsequently shifted to privatization), but work reasonably well for private firms in developed market economies (Jensen and Zimmermann, 1985). Recent theoretical models (Aghion et al., 1994; Blanchard and Aghion, 1996) build on the existing literature and investigate the importance of incentive systems for executive performance in the context of transition economies. Some empirical evidence on the link between executive compensation and enterprise productivity growth during the initial transition period is becoming available (see Jones and Kato, 1996, for a study of Bulgarian firms).
Social Science Research Network, 2014
We identify current challenges for creating stable, yet efficient financial systems using lessons... more We identify current challenges for creating stable, yet efficient financial systems using lessons from recent and past crises. Reforms need to start from three tenets: adopting a system-wide perspective explicitly aimed at addressing market failures; understanding and incorporating into regulations agents' incentives so as to align them better with societies' goals; and acknowledging that risks of crises will always remain, in part due to (unknown) unknowns-be they tipping points, fault lines, or spillovers. Corresponding to these three tenets, specific areas for further reforms are identified. Policy makers need to resist, however, fine-tuning regulations: a "do not harm" approach is often preferable. And as risks will remain, crisis management needs to be made an integral part of system design, not relegated to improvisation after the fact.
The authors would like to thank Melsa Ararat and James Spellman for their useful suggestions.
RePEc: Research Papers in Economics, Dec 1, 1997
... A DRAFT Managers, Incentives and Corporate Performance: Evidence from the Czech RepublicStijn... more ... A DRAFT Managers, Incentives and Corporate Performance: Evidence from the Czech RepublicStijn Claessens Simeon Djankov* December 5, 1997 ... This has been studied extensively (for example, Murphy, 1985 for the effect of performance contracts on market valuation of ...
RePEc: Research Papers in Economics, Oct 1, 2002
meeting for their comments. They thank François Bourguignon and three referees for their extensiv... more meeting for their comments. They thank François Bourguignon and three referees for their extensive comments, Ying Lin (World Bank) for his excellent work with the data, and Brian Deese for other research help. The article was previously entitled: "Will HIPC Matter? The Debt Game