by Javier Espinoza for The Wall Street Journal
Among the risks associated with investing in smaller emerging markets, poor governance standards are often considered one of the most difficult to mitigate.
Now a new report by East Capital, a Stockholm-based firm that invests in frontier and emerging markets including Russia, Eastern Europe, China and emerging Asia, argues that governance standards are improving—in some cases more rapidly than in the developed markets.
The report’s authors have identified the key factors driving the development and enforcement of higher corporate governance standards: active investors, free and independent media, peer pressure and positive influence from corporate governance associations, sector initiatives, research groups and international institutions. Read more here.