Part II Economic Regulation by Home and Host Countries, 9 Corporate Governance and Disclosure

This chapter deals with the related issues of corporate governance and disclosure within MNEs. This has become a highly important issue in the wake of recent corporate scandals involving MNEs, most notably the Enron collapse.1 Both home and host states may require information from a MNE about its worldwide operations for their respective regulatory purposes. In addition, there may be non–governmental stakeholders,2 most notably investors, creditors, employees, and consumers, who need information from the firm about matters of direct concern to their interests. The...