Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Business
Developmental Financial Institutions As Catalysts Of Entrepreneurship In Emerging Economies, Gerard George, Ganesh N. Prabhu
Developmental Financial Institutions As Catalysts Of Entrepreneurship In Emerging Economies, Gerard George, Ganesh N. Prabhu
Research Collection Lee Kong Chian School Of Business
With ongoing privatization efforts in emerging economies, governments have supported developmental financial institutions (DFIs) to spur entrepreneurial activity. The authors use stakeholder theory to suggest that postprivatization stakeholders differ in their preference to seek DFI support. The authors then posit that national developmental priorities influence the DFI's willingness to be involved in the governance of the privatized firm, and they discuss implications of DFI involvement for value creation and entrepreneurship in emerging economies.
Privatization In Emerging Economies: An Agency Theory Perspective, Bavi Dharwadkar, Gerard George, Pamela Brandes
Privatization In Emerging Economies: An Agency Theory Perspective, Bavi Dharwadkar, Gerard George, Pamela Brandes
Research Collection Lee Kong Chian School Of Business
The ineffectiveness of several privatized firms within emerging economies underscores the importance of agency theory issues and their impact on the privatization-performance relationship. The authors argue that weak governance and limited protection of minority shareholders intensify traditional principal-agent problems (perquisite consumption and entrenchment) and create unique agency problems (expropriation). The authors suggest that postprivatization performance can be enhanced by using appropriate ownership, management, and corporate structures that mitigate agency problems in the context of weak governance, and they highlight avenues for research.