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This case study explores which variables—macroeconomic, institutional, and capital controls—are most important in explaining cross-country differences in bond market development. It uses the ratio of amount of local currency bonds outstanding over GDP as a measure of bond market development from 43 countries during 1990–2009. The study examines government and corporate bond markets separately, as the characteristics of these markets are substantially different and requires separate examination. > Main findings are derived from the comparative analysis. Several policy implications drawn from the findings are pertinent to the People's Republic of China (PRC) bond market. The most important implication is that the way to develop fixed income markets is to start with the government bond market. Another important implication from the empirical findings is that mature and well-developed banking sector is critically important to the further development of bond market, particularly to the corporate bond market. While the PRC bond market has developed significantly over recent years, there is much room for improvement. This report provides policy suggestions, albeit not necessarily from empirical findings, to further develop PRC bond markets.

AbstractManuscript TypeEmpiricalResearch Question/IssueWe study an agency problem in private universities – the conflict between controlling families and other stakeholders. We investigate whether universities over which controlling families have disproportionately significant power relative to the amount of funds they contribute, that is, universities with high expropriation risk, are associated with lower outside donations and poor quality.Research Findings/InsightsUsing a sample of Korean private universities, we find that measures of family control in excess of monetary contributions are negatively related to the level of outside donation and measures of university quality. We also find that universities at which the controlling family exerts disproportionate control are more likely to face disputes between the controlling family and other stakeholders. Finally, we show that our results are not driven by reverse causality.Theoretical/Academic ImplicationsWhile the existing literature on not‐for‐profit organizations focuses on the conflict between professional managers and other stakeholders, we study the conflict between controlling families and other stakeholders. We investigate a situation in which the controlling family expropriates other stakeholders, a topic missing from the existing not‐for‐profit literature.Practitioner/Policy ImplicationsThis study offers insights to policymakers interested in creating private universities in an emerging market setting. The relevance of our results is not limited to Korea. According to Altbach, family control of private universities is prevalent in a number of countries, including Mexico, Thailand, Taiwan, Japan, Korea, the Philippines, Argentina, India, and China.