THE DRAMATIC SHIFT IN EMPHASIS FROM A SHAREHOLDER-DOMINATED APPROACH TO A STAKEHOLDER-ORIENTED CORPORATE GOVERNANCE MODEL

2017 ◽  
Vol 12 (2) ◽  
Author(s):  
ATM Adnan ◽  
Hilda Tandigalla
Keyword(s):  
Corporate Governance ◽  
Business Strategy ◽  
Wealth Distribution ◽  
Wealth Maximization ◽  
Governance Model ◽  
Global Standards ◽  
Important Means ◽  
Intellectual Foundations ◽  
Dramatic Shift ◽  
Corporate Governance Model

Corporate governance (CG) has emerged as one of the most recognized areas for researchers, academics, practitioner, and regulators over the last few decades. This paper will initially present an epigrammatic overview on key developments in corporate governance along with the intellectual foundations of the ‘shareholder versus stakeholder’ argument. Additionally, this study tries to analyze the contemporary shift in the perception of corporations from the shareholders wealth maximization to stakeholder’s valuation. It has been noticed that investigating cross country and firm based variances in wealth distribution between diverse interest groups is likely to continue as major focus for CG study. It has been experienced that the nature of the corporation is changing around the globe, Big multinationals have been splitting into smaller liberated corporation, access to capital market is become easier and physical resources are easily replaceable and less exclusive to business strategy therefore the human resources turn into significantly important means to a corporation’s existence and growth. In addition to that firm’s relationships with community and goodwill are becoming equally crucial. In line with that, the implementation of corporate governance principle in every country can be vary because of their different cultural, existing legal system, environmental condition, social and historical values. In addition to the principle differences regarding the interests of the parties served, the two orientations of corporate governance also differ in terms of purpose. This means that the corporate governance evolution will be progressive and different according to individual countries. Furthermore, from a systems-based viewpoint, recent progresses are often viewed as a “mixture” of domestic CG framework. Fundamental features from stakeholder leaned system are reframed with latest aspects of equity-holder leaned models, such as comprehensibility and precision. Shareholder and stakeholder focused CG, might help to create an equilibrium or complement each other such as happening in Germany and Japan. Global standards are also playing a major role in the recent convergence of CG.

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.

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.

The association between CEO incentive rewards and earnings management

2014 ◽  
Vol 9 (1) ◽  
pp. 18-36 ◽  
Author(s):  
Habib Jouber ◽  
Hamadi Fakhfakh
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Institutional Factors ◽  
Content Type ◽  
Financial Decisions ◽  
Shareholder Protection ◽  
Governance Model ◽  
Anglo American ◽  
Corporate Governance Quality ◽  
Corporate Governance Model

Purpose – The purpose of this paper is to investigate whether or not there is a link between CEO incentive-based compensation and earnings management and to examine how institutional environment's features influence such link. Design/methodology/approach – To test the predictions, the authors use a panel of 1,500 American, Canadian, British, and French firm-year observation over the period 2004-2008. Findings – The authors find a significant association between earnings management and CEO incentive-based compensation. Moreover, the analysis provides evidence that institutional factors are strong determinants of this association. Specifically, the results show that firms from countries within the Anglo-American corporate governance model, which provides greater protection of shareholder rights, ensures strict enforcement of law, and scores high on board oversight, tend to have lower level of earnings management. The analysis shows however, that beside the formal corporate governance quality, it is relevant to consider weaker shareholder protection and lower law enforcement indexes to explain earnings management in firms from countries within the Euro-Continental corporate governance model. Originality/value – This paper is the first to provide insights regarding the extent to which CEO incentive rewards imply management discretion and to indicate how much institutional features matter. The analysis contributes to two distinct strands of research. It extends prior research on the association between executive compensation and earnings management and adds to the literature demonstrating a relationship between institutional factors and financial decisions.

Independent Directors: Decision-Makers in the us, Powerless Advisers in China

2016 ◽  
Vol 3 (1) ◽  
pp. 70-111
Author(s):  
Wenjia Yan
Keyword(s):  
Corporate Governance ◽  
Company Law ◽  
Decision Makers ◽  
Independent Directors ◽  
Minority Shareholders ◽  
Governance System ◽  
Governance Model ◽  
Corporate Governance System ◽  
Independent Decision ◽  
Corporate Governance Model

As a global popular corporate governance system developed in the us, independent directors were officially adopted by China through ‘Guiding Opinions on the Establishment of Systems of Independent Directors by Listed Companies’ (hereinafter Independent Directors Opinion) in 2001 and through Article 123 of Company Law when it was amended in 2005. The emphasis on minority shareholders’ protection by adopting independent directors in China can be attributed to the global influence of the American corporate governance model, which depends on disinterested directors as independent decision-makers. However, with more than 10 years having passed, independent directors serve as powerless advisers rather than decision-makers in China. Accordingly, this paper aims to ascertain some profound reasons for powerless advisers in China and provide recommendations to address this problem by comparing the role of independent directors in China and the us.

Sign in / Sign up

Export Citation Format

Share Document