Corporate Governance in the EU, the OECD Principles of Corporate Governance and Corporate Governance in Selected Other Jurisdictions

Abstract This article presents and assesses the methodology and results of a comparative analysis conducted by Bruno Amable in financial systems and corporate governance in the context of current policy and regulatory challenges. The article, which is based on a literature review and game theory examples, first describes and evaluates the methodology and final classification given by Amable. The role of Amable’s core concept; namely, institutional complementarity, is underlined. A game theory application in comparative institutional studies is then presented, including the author’s own “institutional game.” Finally, we assess Amable’s achievements in financial systems and corporate governance, concluding that they are valuable, innovative and useful despite some (perhaps justified) criticisms of the framework Amable used. In particular, the value of introducing institutional complementarity into comparative studies should not be underestimated. The analysis presented here suggests that Amable’s methodology may also be applicable when designing current financial reforms in the EU, especially European Capital Markets Union (CMU), because it can broaden policy maker’s horizons and promote consistent solutions.

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Will the EU Taxonomy Regulation Foster Sustainable Corporate Governance?

Sustainability ◽

10.3390/su132112316 ◽

2021 ◽

Vol 13 (21) ◽

pp. 12316

Author(s):

Alessio M. Pacces

Keyword(s):

Corporate Governance ◽

Environmental Sustainability ◽

Institutional Investors ◽

Law And Economics ◽

Securities Regulation ◽

Environmentally Sustainable ◽

Financial Products ◽

Principal Agent Problem ◽

Sustainability Disclosure ◽

The Eu

EU securities regulation has established a taxonomy of environmentally sustainable activities. This article discusses, from a law and economics standpoint, the potential of this taxonomy to support sustainable corporate governance. Corporate governance can be an efficient way to channel investor preferences towards sustainability because the concentration of institutional shareholding has lowered the transaction costs of shareholder action. However, there is a principal-agent problem between institutional investors and their beneficiaries, which depends on greenwashing and undermines sustainable corporate governance. This article argues that introducing environmental sustainability into EU mandatory disclosure aligns the institutional investors’ incentives with the interest of their beneficiaries and may foster the efficient inclusion of sustainability in corporate governance. The argument is threefold. Firstly, the EU taxonomy may curb greenwashing by standardizing the disclosure of environmental sustainability. Secondly, this information may become salient for the beneficiaries as the same standards define the sustainability preferences to be considered in recommending and marketing financial products. Thirdly, sustainability disclosure prompts institutional investors to compete for sustainability-minded beneficiaries. Being unable to avoid unsustainable companies altogether, institutional investors are expected to cater to beneficiaries’ preferences for environmental sustainability using voice instead of an exit.

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The Impact Of Good Corporate Governance To Manufacturing Firm’s Profitability And Firm’s Value

Signifikan Jurnal Ilmu Ekonomi ◽

10.15408/sjie.v5i2.3542 ◽

2016 ◽

Vol 5 (2) ◽

pp. 181-196 ◽

Cited By ~ 1

Author(s):

Johanes Sumarno ◽

Sendy Widjaja ◽

Subandriah Subandriah

Keyword(s):

Corporate Governance ◽

Fixed Effects ◽

Negative Impact ◽

Stock Exchange ◽

Manufacturing Firms ◽

Fixed Effects Model ◽

Good Corporate Governance ◽

Oecd Principles ◽

Equitable Treatment ◽

The Impact

This paper studied the behavior of management toward the implementation of Good Corporate Governance in Indonesia to determine whether it has any influence towards profitability and its implication to the Manufacturing Firms’ value publicly listed in Indonesian Stock Exchange. There were 41 corporations who met the criteria of the survey. The data were analyzed using Panel Regression with fixed effects Model. The empirical findings show that the implementation of Corporate Governance in Indonesia has a positive, significant and direct impact toward firms’ profitability and firms’ value. Corporate Governance principles based on OECD principles that have positive and significant impact to both profitability and Firms’ Valueis Rights of Shareholders, Role of Stakeholders, Responsibilities of the Board Commissioners and Board of Directors. The principles that have significance and negative impact towards corporate profitability and value, are: Equitable treatment of shareholders and Disclosure and Transparencies. The most significant principle influencing profitability and firms’ value is Disclosure and Transparencies. Profitability plays a greater role in influencing Manufacturing Firms’ value in Indonesia. DOI: 10.15408/sjie.v5i2.3542

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