BUMI Plc: Case of Contrasting Governance Cultures?

2015 ◽  
Vol 4 (2) ◽  
pp. 240-250
Author(s):  
Malla Praveen Bhasa
Keyword(s):  
Corporate Governance ◽  
Governance Structures ◽  
Western Model ◽  
Governance Model ◽  
The Face ◽  
Governance Models ◽  
Corporate Governance Model ◽  
Insight Into ◽  
East West ◽  
Subsequent Failure

For an inquisitive student of corporate governance, the BUMI Plc case offers an extraordinary insight into the nuances of contrasting corporate governance cultures and their associated problems. The marriage of the East–West governance models and its subsequent failure has brought to the fore the vulnerability of the Anglo-Saxonic corporate governance model in the face of entrenched relationships characterizing Eastern governance structures. Western investor Nat Rothschild joins hands with the Bakries of Indonesia to build a mining behemoth. Despite the Bakries’ supposed lack of governance integrity, Nat allies with them with the confidence that the demands of Anglo-Saxonic corporate governance model would play a great leveller in ironing out any mis-governance-related issues. Whether he was too confident of the Western model of governance, or on his own competence as a successful investor, or whether he failed to grasp and appreciate other models of governance is a matter of debate. Suffice it to say that Nat sensed a huge business potential in Indonesia, and despite a contrasting governance model followed by Indonesian businessmen, he partnered with them in the hope that at the end the Anglo-Saxonic governance model would prevail and maximize shareholder value. Was he proven right or whether he misjudged his partner’s governance model forms the basis of this case. The case does not argue for or against any governance model. Instead it draws the student’s attention to the existence of different governance models and their interplay in a unified setting.

scholarly journals Selection of Optimal Forms of Corporate Governance Model: Genesis and Trends of Selection in the Conditions of Post-Coronavirus Recovery of Economic Potential

2021 ◽  
Vol 93 ◽  
pp. 03013
Author(s):  
Oleg Sudorgin ◽  
Andrey Strygin ◽  
Ekaterina Karelina
Keyword(s):  
Corporate Governance ◽  
Economic Potential ◽  
Brics Countries ◽  
Governance Model ◽  
National Economic ◽  
The Russian Federation ◽  
Governance Models ◽  
Corporate Governance Model ◽  
Near Future ◽  
Selection Of

Global macroeconomic changes in the growth rates of the world's leading countries in the 21st century are undergoing significant changes due to the obvious advantages of Asian forms of corporate governance models of the leading BRICS countries, including the Russian Federation. At the same time, based on the short, in comparison with developed market economies, experience of using corporate governance methods in the country, it seems expedient in the process of restoring the national economic potential to its pre-coronavirus level, to use a combination of Asian and a set of European-American models of corporate governance in the near future, what is motivated in this publication, based on the genesis of the formation, transformation and development of corporate governance in Russia.

Examination of the Institutional and Regulatory Framework for Corporate Human Rights Accountability in South Africa

2017 ◽  
Vol 25 (2) ◽  
pp. 158-175
Author(s):  
Abiodun Jacob Osuntogun
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Human Rights ◽  
Regulatory Framework ◽  
Institutional Framework ◽  
Bill Of Rights ◽  
Corporate Accountability ◽  
Governance Model ◽  
Wide Gap ◽  
Corporate Governance Model

This article examines the existing statutory and institutional framework for corporate human rights accountability in South Africa. It considers the questions whether corporations are duty bearers and whether they have responsibilities or obligations to respect human rights and the mode of corporate governance model adopted to regulate them. It argues that although the Bill of Rights adequately provides for the culture and entrenchment of corporate accountability for human rights, the possibility of achieving its objective is not certain because there is a wide gap between the fulfilment of the vision of the Constitution and the mechanism adopted for its realisation.

scholarly journals Quality of Corporate Governance Risk Management in Dealing with Unanticipated Events: Evidence from Pakistan

2019 ◽  
Vol 8 (1) ◽  
pp. 1-24
Author(s):  
Rubeena Tashfeen ◽  
Saud Hayat ◽  
Afreen Mallik
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Stock Exchange ◽  
Governance Structure ◽  
Governance Structures ◽  
Governance Mechanisms ◽  
Market Dynamic ◽  
Average Abnormal Return ◽  
The Face ◽  
Governance Risk

This study examines the effectiveness of the corporate governance structure when coping with any potentially unexpected events. For the purpose of this research, an event study has been conducted in order to investigate the market responses of various firms through the Cumulative Average Abnormal Return (CAAR) of the stocks listed on the Pakistan Stock Exchange (PSX). The stocks data under consideration is that which was presented after the assassination of Benazir Bhutto in 2007. The overall results indicate that firms that are governed conventionally do not perform well in the markets during a crisis situation. In our comparison of conventionally, and non-conventionally governed firms, the overall pooled results show that the former record a lower CAAR. This, in short, indicates that conventional corporate governance structures may not be equipped to take timely and dynamic actions that are deemed necessary in the face of a crisis. Moreover, our results suggest that firms which have less diversified ownership, and governance mechanisms are less vulnerable to such unanticipated events. There are two reasons that support our hypotheses: first, strict governance mechanisms, and a resultant cautious/conservative approach may not allow firms to take timely and proactive decisions during these situations and second, there is a lower chance of existing agency problems, as family owners would be working for the protection of their own wealth during these events. Therefore, our findings ultimately reveal that the conventional corporate governance structures that work during normal time period, may become ineffective during a crisis. This study, aims to fill a gap in the literature in order to provide fresh insights into the stock market dynamic, and corporate governance risk management. Furthermore, it also highlights the benefits of family owned structures, and unconventional corporate governance systems, that may outperform conventional governance structure in some situations. This, however, raises the question whether one governance framework could be the correct fit in all the situations.

The Merit of the DATA Act to Enhance the Governmental Reporting Process: A Corporate Governance Perspective

2018 ◽  
Vol 15 (1) ◽  
pp. 107-120 ◽  
Author(s):  
Jacob Errichetti ◽  
Saeed J. Roohani
Keyword(s):  
Corporate Governance ◽  
Data Transfer ◽  
Information Flows ◽  
Corporate Context ◽  
Governance Model ◽  
Reporting Process ◽  
Regulatory Bodies ◽  
Common Goals ◽  
Corporate Governance Model ◽  
Conceptual Link

ABSTRACT This paper utilizes corporate governance concepts to assess the merit of the Digital Accountability and Transparency Act of 2014 (DATA Act). The paper first compares the information flows seen in a corporate context to those seen in a governmental reporting context. The paper then utilizes agency theory to establish a conceptual link between the two reporting processes. This conceptual link is used to identify common goals between the participants in the information flows. Following this, a corporate governance model is used to outline factors that contribute to effective corporate governance. This governance model is then used as a basis for assessing the merit of the DATA Act. After this, differences between the participants in the information flows are discussed and limitations of the paper are acknowledged. The paper suggests that the DATA Act has merit due to its potential to improve transparency and monitoring in the governmental reporting process. Increased data timeliness and usability will enhance transparency, while improvements in automation, data transfer, and data analytics will improve monitoring. The conclusions of this paper have implications for the participants in the governmental reporting process including government agencies, legislators, regulatory bodies, contractors, non-voting taxpayers, and members of the voting public.

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