Corporate governance

Corporate governance, value creation and growth



Corporate Bonds, Bondholders and Corporate Governance

12 February 2015


Corporate bond markets have become an increasingly important source of financing for non-financial companies. This trend is coupled with a relative decrease in traditional bank lending to non-financial companies and low levels of bond interest rates. This report provides a comprehensive global overview of all corporate bond issues since 2000 and experiences of governance engagement by bondholders.


The report also analyses trends in secondary bond markets, including market liquidity, the role of market makers and the relatively slow introduction of electronic trading systems. By constructing an overall "covenant protection index", the report suggests that bond investors in their search for yield have overall traded governance rights for higher expected returns. This shift also seems to be associated with higher risk-taking. The report ends with a discussion about the scope for institutional changes that may build a larger community of truly informed and motivated bond investors.


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A key policy objective of corporate governance is to make sure that the financial sector can serve the needs of the real economy; that savings are available and effectively channeled to corporations that need capital for innovation, job creation and growth. Corporate governance is therefore an integral part of any policy for economic development and social progress. Today, however, the relevance of existing approaches to corporate governance are challenged by fundamental developments in financial markets and corporate practices. These changes include an increase in financial intermediation, the appearance of new instruments like exchange traded funds, larger private pools of capital, shifts in global wealth and a growing importance of human capital and intangible assets in individual firms.

The Corporate Governance, Value Creation and Growth Initiative was launched in 2013 by the OECD Corporate Governance Committee. This initiative addresses how better corporate governance policies can support corporate access to capital, value creation and economic growth. The work is carried out in close co-operation with policymakers, the business community, investors, academics and other key stakeholders. Special attention is being given to emerging markets. 


Key documents

Corporate Bonds, Bondholders and Corporate Governance, 2015

Corporate Governance, Value Creation and Growth, Keynote address by Gabriela Ramos, Chief of Staff and G20 Sherpa, OECD, 2014

Institutional Investors as Owners: Who are they and what do they do?, 2013

Who Cares? Corporate Governance in Today's Equity Markets, 2013

Making Stock Markets Work to Support Economic Growth, 2013

Corporate Governance, Value Creation and Growth: The bridge between finance and enterprise, 2012



Roundtable on Equity Market Development and Corporate Governance in Emerging Markets
Istanbul, 16 January 2014

OECD-Assonime meeting on corporate governance, value creation and growth
Rome, 10 June 2013 

Roundtable on Corporate governance, value creation and growth
Istanbul, 1 February 2012


Institutional Investors as Owners Cover Page

Institutional Investors as Owners, 2013


Corporate governance working paper no.8 - 180 pixels wide

Who Cares? Corporate Governance in Today's Equity Markets, 2013


Corporate Governance Working Paper No.10: Making stock markets work to support economic growth

‌Making Stock Markets Work to Support Economic Growth, 2013




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