Delechat et al.: Harnessing Resource Wealth for Inclusive Growth in Fragile States

ABSTRACT:

Like other fragile sub-Saharan African countries, Côte d’Ivoire, Guinea, Liberia, and Sierra Leone are seeking to harness their natural resource potential in the context of ambitious development strategies. This study investigates options for scaling up public investment and expanding social safety nets in a general equilibrium setting. First, it assesses the macro-fiscal implications of alternative fiscal rules for public investment, and, second, it explicitly accounts for redistribution through direct cash transfers. Results show that a sustainable non-resource deficit target is robust to the high uncertainty of resources output and prices, while delivering growth benefits through higher public investment. The scaling-up magnitudes, however, depend on the size of projected resource revenue and absorptive capacity. Adding a social transfer raises private consumption, suggesting that a fraction of the resource revenue could be used to expand safety nets.

 

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Lyu & Zhang: Institutional Investors and the Cost of Equity Capital – Evidence from Chinese Listed Companies

ABSTRACT:

This paper investigates the relationship between institutional investors and the company’s cost of equity capital. Especially considering the large proportion of state-owned shares in China’s capital market; we divide the Chinese listed companies into state-owned shares and non-state-owned shares, and investigate the different effects of institutional investors on the company’s cost of equity capital in two groups. This study confirms that with the increase of the proportion of institutional ownership, the company reduced the cost of equity capital; Relative to state-owned enterprises, institutional investors help to reduce much more cost of equity capital of non-state-owned enterprises.

 

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Lee: Hybrid Corporate Governance – The Case of Asia

ABSTRACT:

Asia’s economy has undergone a number of changes in corporate ownership and financial structure in the last several years. This paper addresses the evolving patterns of corporate governance among Asian countries since the crisis in 1997. Based on institutional theory, the discussion in this article is intended to illuminate in particular the notion of hybridization of institutional change in the form of corporate governance. The paper shows how Asian economies are reshaping their corporate governance features, leading to a diversity of corporate governance forms. Our empirical analysis suggest that the current Asian model can be described as being in a ‘hybrid model,’ with a mixture of new market-oriented elements and old practices of the Asian model.

 

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