Market Response to Inefficient Judiciary: Promoting Rule Compliance and Good Governance Practice

Aleksandra Gregoric, Katarina Zajc, Marko Simoneti

    Research output: Working paperResearch

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    Abstract

    The paper re-examines the concerns on the rule-based governance in poor institutional environment. By relying on the theories and research vehicles of social psychology, we show that under certain conditions, the ‘law on books’ may still play role in governing market transactions, even though no formal enforcement applies. We furthermore expose the potential of the Corporate Governance Code as the ‘signaling device’ and provide arguments as to why this potential may be even stronger in an environment with relatively weak institutions in comparison to the developed market economies.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherDepartment of International Economics and Management, Copenhagen Business School
    Number of pages30
    Publication statusPublished - 2007
    SeriesWorking Paper / Department of International Economics and Management, Copenhagen Business School
    Number9-2007

    Cite this

    Gregoric, A., Zajc, K., & Simoneti, M. (2007). Market Response to Inefficient Judiciary: Promoting Rule Compliance and Good Governance Practice. Department of International Economics and Management, Copenhagen Business School. Working Paper / Department of International Economics and Management, Copenhagen Business School, No. 9-2007