Corporate finance and governance in emerging markets: A selective review and an agenda for future research

There are important organizational and behavioraldifferences between firms inemergingmarkets
and those in developed markets. We propose a top-down approach to understand how key
institutional forces shape the structures and policies of firms in emerging markets. We review a
selective set of prior studies as well as papers included in this Special Issue in identifying
government quality, state ownership, and financial development as critical institutional forces
that shape the financing and governance of firms in emerging markets. We suggest that future
research should pay attention to several important but unanswered topics related to informal
enforcement, government incentives, family firms, and network organizations.