Corporate Governance in Comparative Perspective

2020 ◽  
pp. 1-9
Author(s):  
Helmut K. Anheier ◽  
Christoph M. Abels
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Social Enterprises ◽  
Broad Sense ◽  
Comparative Perspective ◽  
Comparative Approach ◽  
International Organisations ◽  
Legal Foundation ◽  
Quality Of Governance

In a broad sense, corporate governance describes the mechanisms, relations, and processes through which the interests of a corporation’s stakeholders are balanced. Yet, corporate governance is not limited to companies but can be found in international organisations, philanthropic foundations, and social enterprises, among other organisational forms. This chapter outlines the volume’s comparative approach that highlights the diversity of corporate governance across different forms and fields. Starting with the financial crisis, the chapter discusses the legal foundation of corporate governance regimes and introduces the relevant laws and codes as well as prominent indicators to measure the quality of governance in corporations. Afterwards, the book’s chapters are briefly introduced and connected to the volume’s overarching interest.

Influence of Shareholders’ Activism and Firm-level Variables on the Corporate Governance Quality in India

2016 ◽  
Vol 9 (2) ◽  
pp. 122-147 ◽  
Author(s):  
Varun Bhandari ◽  
Ashima Arora
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Empirical Work ◽  
Shareholder Activism ◽  
Firm Level ◽  
Factors Influencing ◽  
Quality Of Governance ◽  
Governance Quality ◽  
Corporate Governance Quality

Corporate governance (CG) gained widespread prominence as a medium for boosting corporate performance especially after the financial crisis of 2008. With limited empirical work on factors influencing the CG quality (CGQ), this article focuses on the construction of the CG Index (CGI) by considering a total of 64 attributes encapsulated in five sub-indices followed by the investigation of effect of shareholder activism and firm-level variables on it. The estimations are based on companies listed in S&P CNX NIFTY Index from the financial year 2008–2013. The examination of results relays that both shareholder activism and firm-level variables have a significant impact on the CGQ of the firms. The significant impact of Disclosure and Board Index on the performance of firms emphasised the importance of disclosure norms in driving the performance by improving investor perceptions through higher transparency. And active board contributes in dispelling agency and managerial issues assisting in improving firm’s value. Our findings imply that shareholder activism and firm-level variables help in bolstering the quality of CG. Large concentrated holdings limit the power in few hands that deter the use of effective shareholder activism and thus should be reduced to enhance the quality of governance. The policymakers and regulators are needed to pressurise institutional investors for active participation in the companies’ routine decisions to increase vigilance regarding CG issues.

Political connections, ownership structure and quality of governance

2017 ◽  
Vol 13 (4) ◽  
pp. 358-377 ◽  
Author(s):  
Saidatou Dicko
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Political Connections ◽  
Minority Shareholders ◽  
Content Type ◽  
Compensation Structure ◽  
Theoretical Contribution ◽  
Concentrated Ownership ◽  
Quality Of Governance

Purpose The purpose of this paper is to ask the following question: is there a link between being politically connected, the quality of governance and the company’s ownership structure? Design/methodology/approach The author then examined Canadian companies from the S&P/TSX index for the year 2015. Findings Political connectedness is significantly associated with lower quality of governance in relation to shareholders’ rights; ownership concentration is associated with lower quality of governance in relation to the overall governance, board of directors, shareholders’ rights and compensation structure indices; ownership structure does not mediate the relationship between political connections and quality of governance; and number of political connections through the executive is associated with less risky governance practices in relation to compensation structure; in other words, when members of the executive are politically connected, the firm adopts better compensation practices. Research limitations/implications The time limitation is the main weakness of this study and probably the cause of observed mitigated results. Practical implications The author hope that the results will inform regulators on the need not only to further regulate the business-politics relationship, but also to consider the specific traits of concentrated ownership companies and the most critical aspects of corporate governance in politically connected firms, such as shareholders’ rights, particularly those of minority shareholders. For example, an intriguing case to investigate in the Canadian context would be Pierre Karl Péladeau’s foray into Quebec politics and the controversy ignited by his political bid in light of his position as majority shareholder (75 percent) in communications giant Quebecor Inc. Social implications In fact, the results shown that concentrated ownership firms have lower governance quality than non-concentrated ones. Furthermore, in a concentrated ownership context, the minority shareholders’ rights could be threatened. In this sense, the results also shown that shareholders’ rights seem to be the most critical governance issue for the politically connected Canadian firms. These results are therefore the indication that Canadian financial market regulators must take action about politically connected and concentrated ownership firms in order to further protect minority shareholders’ rights. Originality/value This study makes a double theoretical contribution by enriching the literature on corporate governance and by providing one of the first investigations into the direct and comprehensive relationships between political connections, governance and ownership structure.

scholarly journals Determinants of Labor Productivity in Emerging Markets: Evidence from Pre- and Post-Financial Crisis Mexico

2018 ◽  
Vol 20 (3) ◽  
pp. 259
Author(s):  
Young-Hee Kang ◽  
Kyunga Na
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Emerging Markets ◽  
Labor Productivity ◽  
Global Financial Crisis ◽  
Foreign Ownership ◽  
The World Bank ◽  
Before And After ◽  
The Global Financial Crisis

Although the global financial crisis of 2008 had tremendous effects on global businesses, its impact on firm performance in emerging markets is unknown. To develop this knowledge, this study explores the factors that influenced labor productivity in emerging markets before and after the crisis. Using a sample of 2,061 Mexican firms that were collected by the World Bank in 2006 and 2010, this study investigates the relationships of bribery, informality, and corporate governance to labor productivity. The results show that, before the crisis, informality and foreign ownership were positively associated with labor productivity. On the other hand, after the crisis, bribery and informality are negatively related to labor productivity, while foreign ownership and external auditing make positive impacts on labor productivity. The findings imply that businesses need to improve the quality of their corporate governance and decrease bribery. Governments of emerging markets need to reduce the levels of informality.

scholarly journals Corporate governance and firm performance: New evidence from Brazil

2011 ◽  
Vol 8 (4) ◽  
pp. 527-531
Author(s):  
Mariana Vieira ◽  
Andre Carvalhal da Silva ◽  
Otavio Figueiredo
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Positive Relation ◽  
Academic Literature ◽  
Future Performance ◽  
Quality Of Governance ◽  
And Performance ◽  
New Evidence ◽  
The Relationship

The relationship between governance and firm performance has been vastly studied in the academic literature. Although most studies indicate a positive relation between governance and performance, this result is not clear and conclusive to many experts. This paper uses a new methodology to analyze the relation between governance and performance. We compute the change in the quality of governance and classify the firms into three groups (positive, neutral and negative variation). Then we calculate the current and future performance for each group and check if there is a relation between changes in governance and firm performance. Analyzing Brazilian data from 2002 to 2008, our results indicate that positive (negative) changes on corporate governance are associated with positive (negative) changes on firm performance

scholarly journals Editorial: Multilevel analysis of corporate governance and leadership

2019 ◽  
Vol 17 (1) ◽  
pp. 4-6 ◽  
Author(s):  
Virginia Bodolica
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Network Governance ◽  
Real Earnings Management ◽  
Management Board ◽  
Controlling System ◽  
Adoption Effect ◽  
Broad Variety ◽  
Quality Of Governance

The articles included in this volume of the journal discuss a broad variety of topics, including accrual and real earnings management, board of directors’ characteristics, mandatory disclosure of non-financial information, digital transformation strategies of firm leaders, post-adoption effect of alternative performance measures’ guidelines, corporate controlling system expectations, quality of governance frameworks and practices, strategic dividend decisions, network governance, and compliance management. All these aspects continue to make headlines in the popular press and remain topical in the extant corporate governance literature (Bodolica, Dupuis, & Spraggon, 2019).

scholarly journals The Trend of CSR Disclosures and the Role of Corporate Governance Attributes: The Case of Shari'ah Compliant Companies in Malaysia

2012 ◽  
Vol 6 (2) ◽  
pp. 221
Author(s):  
Abdifatah Ahmed Haji
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Narrative Form ◽  
Policy Changes ◽  
Mandatory Requirement ◽  
Increasing Trend ◽  
Recent Financial Crisis ◽  
Csr Disclosure

This study examines the trend of corporate social responsibility (CSR) disclosures and the role of corporate governance attributes in the CSR disclosures of Shari’ah compliant companies (ShCCs) in Malaysia for the years 2006 and 2009, a period which corresponds before and after a plethora of significant changes in Malaysia, encompassing the recent financial crisis and policy changes in the form of corporate governance restructuring. Using a CSR disclosure checklist, the extent and quality of CSR discourses of a sample of 76 ShCCs was examined. The results indicate that the extent and quality of CSR disclosures by the ShCCs is in overall low. However, there was a significant increasing trend in both the extent and quality of the CSR disclosures by the ShCCs over time. results of this study offer a number of practical implications. First, whilst the findings reveal a significant increasing trend of CSR information subsequent to the policy changes and the recent financial crisis, the CSR information was however not systematically provided, with most of the disclosures being stated in a narrative form. Hence, the policy makers in Malaysia may want to re-enforce the mandatory requirement of CSR information and provide a detailed CSR framework for the companies to follow such as "what" and "how" the CSR information should be disclosed. Second, the role of corporate governance attributes in the social disclosures of the ShCCs did not improve following the revised code, perhaps due to the unfolding recent global financial turmoil which may have undermined the effectiveness of the corporate governance attributes. <br />Finally, this study offers the first empirical study to have assessed the trend of CSR disclosures and the role of governance attributes in CSR disclosure practices by the ShCCs.

scholarly journals THE EFFECT OF GOVERNANCE QUALITY AND EARNING MANAGEMENT WITH INTERNAL CONTROL AS MODERATING VARIABLE TOWARDS FIRM VALUE

2020 ◽  
Vol 1 (2) ◽  
pp. 192-200
Author(s):  
Mufidah Mufidah ◽  
Ira Febrianti ◽  
Masnun Masnun
Keyword(s):  
Corporate Governance ◽  
Statistical Analysis ◽  
Earnings Management ◽  
Internal Control ◽  
Firm Value ◽  
Real Earnings Management ◽  
Internal Control System ◽  
Quality Of Governance ◽  
Governance Quality

The purpose of this study is to analyze the influence of the quality of corporate governance, real earnings management on firm value and to analyze the influence of the quality of corporate governance with the internal control system as a moderating variable on firm value in companies included in the LQ 45 index 2016-2018. The data in this study used descriptive statistical analysis and inferential statistical analysis. The results showed that the Quality of Governance had no significant effect on Firm Value, Earnings Management had a significant effect on Firm Value and Internal Control could not moderate the effect of Governance Quality on Firm Value.

Quality of Governance at the Communal Level in Poland: an Exploratory Study of the Worst Performer Case From the Opolskie Province

2020 ◽  
Vol 21 (1) ◽  
pp. 22-55
Author(s):  
Bartosz Czepil
Keyword(s):  
Exploratory Study ◽  
Quality Index ◽  
Extreme Case ◽  
Quality Level ◽  
Case Method ◽  
Major Conclusion ◽  
Second Stage ◽  
Quality Of Governance ◽  
Governance Quality

The objective of this paper is an attempt to explain the determinants of the lowest governance quality level in one of the communes of the Opolskie Province, Poland. The first stage of the research consisted in developing a commune-level governance quality index in order to measure the quality of governance in the 60 communes of the Opolskie Province. Subsequently, the commune with the lowest score in the index was qualified for the second stage of the research which was based on the extreme case method. The major conclusion from the research is that the commune leader's governance style which allowed him to hold on to power for many terms of office was responsible for generating low governance quality. Furthermore, the low quality of governance was not only the effect of the governance style but also the strategy aimed at remaining in the commune leader office for many terms.

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