Survey Results on Banks and Corporate Governance

Abstract

In this chapter, the empirical analysis will focus on those companies which went through the bank-conciliation procedure, an innovative instrument designed on the one hand to allow the banks to offload of their bad debts, and on the other to induce enterprises to adjust to the realities of a market economy. Each bank leads and controls not only the process of debt renegotiation, but is also the key player in the restructuring of the enterprise. The question this chapter attempts to answer is whether and how banks in a transition economy measured up to the central corporate-governance role they were given for the first time.