by Debora Revoltella and Peter R. Haiss & Gerhard Fink
The authors of the two papers in this SUERF Study have analyzed the changing demands, which banks and other financial institutions have had to meet in Central and Eastern Europe since 1989. Debora Revoltella has studied the financial systems in Poland, the Czech Republic and Hungary. She explains how the observed patterns of financing in the three countries have been affected by the inadequate protection of creditors due to the unsatisfactory state of collateral and bankruptcy laws in the first years after the transition. Information asymmetries are important, because monitoring of the performance of corporate managers by banks and shareholders depends on reliable data on earnings and trustworthy evaluations of the risks involved. The author argues that there is room for cautious optimism with regard to the role of banks in the future Corporate Governance System in the three countries. The future role of the stock market depends on an appropriate development of the financial infrastructure and the legal framework.
Keywords: corporate governance
Authors: Debora Revoltella, Peter R. Haiss & Gerhard Fink
Editors: Morten Balling