scholarly journals The ignored tool of corporate governance rating: An overview of the corporate world in the emerging market

2022 ◽  
Vol 11 (1) ◽  
pp. 38-44
Author(s):  
Ayyagari Lakshmana Rao ◽  
Nikhil Kulshrestha ◽  
Gopalarathinam Ramakrishnan ◽  
Prakash Chandra Bahuguna
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Business Performance ◽  
Performance Metrics ◽  
Credit Rating ◽  
Emerging Market ◽  
Future Research ◽  
Credit Rating Agency ◽  
Corporate World ◽  
Stock Market Performance

Generally, the interest of stakeholders is to see the growth of their entities, also they benchmark their entities through business performance metrics or tools like return on equity, return on assets (Mishra & Kapil, 2018), earnings per share, gross profit margin, employee productivity, sales turnover, ratings given by prominent credit rating agencies, such as Investment Information and Credit Rating Agency (ICRA), Credit Rating Information Services of India Limited (CRISIL), Standard and Poor, etc. In addition to this, internal governance mechanisms, board of directors’ characteristics, their independence, transparency, concentration, and presence of employees in the ownership structure also influence financial and stock market performance (Braendle, Stiglbauer, Ababneh, & Dedousis, 2020). However, assessing the performance of entities through some of these limited angles is not always possible. One more criterion for assessing the performance of entities is corporate governance rating (CGR). However, it is not widely used as a tool to assess a firm’s performance in emerging markets. The present research paper is intended to address the scenario of corporate governance rating in Indian corporate world to assess a firm’s performance. With the help of majorly secondary sources of data, this study was conducted from 2003 to 2021 based on the CRISIL’s rating pattern. The results revealed that only 20 companies adopted the process of corporate governance rating. The findings showed the significance of corporate governance rating, its adoption and future research in the development of the rating mechanisms in India as well as in other emerging markets.

Consumer Behavior in Emerging Markets

2018 ◽  
pp. 218-240 ◽  
Author(s):  
Raquel Castaño ◽  
David Flores
Keyword(s):  
Consumer Behavior ◽  
Emerging Markets ◽  
Emerging Market ◽  
High Income ◽  
Future Research ◽  
Psychological Processes ◽  
Developed Markets ◽  
Contextual Characteristics ◽  
Initial Framework

Emerging markets are substantially different from markets in high-income, industrialized societies. While many aspects of consumer behavior are the result of inherent psychological processes and are, thus, generalizable across countries and cultures, the specific contextual characteristics of emerging markets can significantly influence other aspects of consumer behavior. In this chapter, we explore the behavior of emerging market consumers. This chapter reviews the existing literature and proposes an initial framework delineating the main differences between emerging markets and developed markets consumers that describe how consumers in these societies recognize a need for, select, evaluate, buy, and use products. The chapter discusses the issues and contributions of the research on emerging consumers and presents implications of extant research for international managers. Finally, the chapter elaborates on an agenda for future research in this area.

Investments by Emerging-Market Multinationals in Other Emerging Markets

2018 ◽  
pp. 630-656
Author(s):  
Jing Li ◽  
Daniel Shapiro
Keyword(s):  
Sustainable Development ◽  
Corporate Governance ◽  
Emerging Economies ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Institutional Development ◽  
Spillover Effects ◽  
Investment Strategy ◽  
Future Research ◽  
Foreign Direct Investments

This chapter reviews the literature on foreign direct investments among emerging economies (E-E FDI), focusing on the motivations behind E-E FDI, country-specific advantages and firm-specific advantages associated with emerging-economy multinational enterprises (EMNEs), and spillover effects of E-E FDI on host-country economic and institutional development. We identify the following topics as posing important questions for future research: EMNEs’ ability to leverage home-government resources and diplomatic connections to promote investment in other emerging economies; nonmarket strategies of EMNEs in emerging economies; ownership and corporate governance affecting investment strategy and performance of EMNEs; E-E FDI contributions to sustainable development in host countries. Future studies should also consider potential heterogeneity among EMNEs by integrating insights from institutional theory, network theory, political science, corporate governance, corporate social responsibility, and sustainable-development research.

Comparative Corporate Governance in Emerging Markets

2018 ◽  
pp. 184-218 ◽  
Author(s):  
Ruth V. Aguilera ◽  
Ilir Haxhi
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Boards Of Directors ◽  
Stakeholder Management ◽  
Top Management Teams ◽  
Comparative Approach ◽  
Future Research ◽  
Main Research ◽  
Bric Countries ◽  
Cross National

This chapter provides an overview of corporate governance (CG) in emerging markets (EMs). Focusing mainly on the BRIC countries (Brazil, Russia, India, and China), the chapter adopts a systematic cross-national comparative approach. It begins by highlighting the importance of better understanding CG in EMs, and identifies some of the key challenges these countries face as they seek to enhance their CG. The chapter goes on to review managerial research conducted after the year 2000 on CG in emerging markets in the following four categories: ownership, boards of directors, top management teams (TMTs), and CG practices and reform. The chapter discusses the main research questions and findings from this collective body of work. It is noteworthy how “siloed” this research has been in terms of drawing few cross-national comparisons. The third section offers an overview of the main CG features of each of the BRIC countries relative to one another, taking on the OECD Guidelines of CG as its benchmark framework. To do so, the chapter first addresses core governance areas related to the overall model of CG, ownership types and ownership rights, information disclosure and reporting, and stakeholder management and corporate social responsibility. The chapter concludes by highlighting common themes for CG in emerging markets and suggesting fruitful areas for future research.

Internationalization of Emerging-Market Multinationals

2020 ◽  
pp. 231-248
Author(s):  
Alvaro Cuervo-Cazurra ◽  
Alicia Rodríguez ◽  
C. Annique Un
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Future Research ◽  
Frugal Innovation ◽  
Theoretical Concepts ◽  
Emerging Market Multinationals ◽  
Firm Internationalization

This chapter analyzes the internationalization of emerging-market multinational enterprises (EMNEs) to clarify past contributions and outline suggestions for future research. We critically review the novelty of the phenomenon associated with the foreign expansion of firms from emerging markets, the new theoretical concepts introduced from analyzing these firms, and the new explanations related to their internationalization. We propose that future research can advance our understanding of these firms by studying how the underdevelopment of the home country’s economy and institutions influences firm internationalization. We specifically discuss four areas that can yield promising insights for internationalization research: frugal innovation, contractual innovation, upgrading escape, and institutional escape.

scholarly journals Corporate governance and firm performance: Evidence from an emerging market

2019 ◽  
Vol 9 (1) ◽  
pp. 45-52 ◽  
Author(s):  
Ahmed S. Alanazi
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Emerging Markets ◽  
Regression Models ◽  
Emerging Market ◽  
Operating Performance ◽  
Listed Firms ◽  
Developed Markets ◽  
Two Samples ◽  
And Performance

The paper investigates the link between corporate governance scores and firm performance among the largest 90 listed companies on the Saudi Stock market. The sample of 90 listed firms is split into two samples: firms with high governance scores and firms with low governance scores. The research compares and contrasts the operating performance of the two samples. In addition, regression models are used to test the link between governance scores and performance. No link between the companies’ corporate governance scores and operating performance is found. It is difficult to capture all elements of the complex corporate governance topic in corporate governance scores. It seems that corporate governance in emerging markets lags far behind that of developed markets. This is the first paper to examine the link between corporate governance scores and operating performance in the Saudi market, a new emerging market that has not been examined. The paper adds to the debate in the literature whether there is a link between corporate governance scores and performance. The evidence in the literature is inconclusive.

scholarly journals Corporate governance challenges: In the context of MENA countries

2019 ◽  
Vol 8 (4) ◽  
pp. 35-45
Author(s):  
Khaled Otman
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Development Economic ◽  
Future Research ◽  
Mena Region ◽  
Mena Countries ◽  
Governance Model ◽  
Governance Challenges ◽  
Corporate Governance Model

Strong corporate governance is vital for countries in the Middle East and North Africa (MENA) as they strive to increase economic growth and reinforce competitiveness and create prosperous societies. This paper evaluates the corporate governance landscape by identifying Development Economic and policy challenges in the MENA countries. In addition, it discovers the role of MENA markets and OECD in improving corporate governance. The current study found that corporate governance is still in the early stages in MENA region and it recommends that there is a need for future research to develop corporate governance model in the unique economic and social environment in the MENA countries. The contribution of this research is significant, not only for the MENA region, but also for application to other emerging markets. In this study, clear insights are provided for policymakers, regulators, managers, investors and researchers involved in emerging markets.

scholarly journals Internationalization of state-owned enterprises from emerging markets: Overview of theoretical approaches

2020 ◽  
Vol 19 (2) ◽  
pp. 227-255
Author(s):  
Daria S. Klishevich ◽  
◽  
Andrey Yu. Panibratov ◽  
Keyword(s):  
Emerging Markets ◽  
Institutional Environment ◽  
Emerging Market ◽  
State Ownership ◽  
Research Field ◽  
Future Research ◽  
Institutional Perspective ◽  
Theoretical Approaches ◽  
Emerging Market Countries ◽  
International Strategies

The article presents the analysis of the theoretical and empirical research on the phenomenon of the internationalization of state-owned enterprises from emerging market countries. Contemporary internationalized state-owned enterprises are far from the uncompetitive and ineffective firms of the 20th century that mostly operated domestically and give examples of truly exciting international strategies. However the question stays open, namely how exactly state ownership shapes their international strategies. The existing studies are vast and lack systematization, and the purpose of this article is to analyze the most widely used theoretical approaches that investigate internationalization of emerging markets of stateowned enterprises. The most popular theoretical approach to study the internationalization of emerging markets of state-owned enterprises is the institutional perspective that studies how the interplay of state ownership of companies and institutional environment shapes their international strategies. Nevertheless, the synergy of theoretical approaches is needed in order to extend knowledge on the internationalization of the state-owned enterprises. Examples of such a synergy are presented in this paper. It also offers prospects for future research and further topics to study. Analysis of theoretical approaches that study internationalization of emerging markets of state-owned enterprises helps map the research field and show where it is moving. The paper has value for both academia and practitioners that deal with the global expansion of state-owned enterprises from emerging markets.

scholarly journals Corporate governance and firm performance in the emerging market: A review of the empirical literature

2021 ◽  
Vol 10 (1) ◽  
pp. 96-111
Author(s):  
Isaac Francis Antwi ◽  
Carla Carvalho ◽  
Cecília Carmo
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Audit Committee ◽  
Emerging Market ◽  
Gender Diversity ◽  
Science Research ◽  
Empirical Literature ◽  
Research Trend ◽  
Future Research ◽  
Research Experience

After decades of many corporate scandals and financial meltdowns, the quest for effective corporate governance and firm performance has raised the concern of a lot of academicians, practitioners, and researchers regarding articles written on this issue. This study seeks to review corporate governance and firm performance articles written in Ghana under the author’s keywords in order to fulfill the objective. The goal is to identify the research trend and then to suggest the idea of future research directions. The study has conducted a review of corporate governance research by searching at Scopus and Web of Science research databases from 2006 to 2020 to prepare the list of articles. A comprehensive review of recent corporate governance and firm performance literature is essential because it provides a basis for comparing Ghana’s corporate governance research experience with other emerging economies in other continents. The findings reveal that two keywords on corporate governance analysed in this study – board composition and ownership – have many written articles, while compensation has the least number of articles. However, in the future, gender diversity and audit committee may be investigated since it has received global attention.

Corporate Governance and Voluntary Disclosure: A Synthesis of Empirical Studies

2020 ◽  
Vol 8 (2) ◽  
pp. 117-138
Author(s):  
Rupjyoti Saha ◽  
K. C. Kabra
Keyword(s):  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Emerging Market ◽  
Empirical Studies ◽  
Practical Importance ◽  
Empirical Literature ◽  
Future Research ◽  
Explanatory Variables ◽  
Legal Enforcement ◽  
The Relationship

Voluntary disclosure (VD) is considered potentially important for efficient functioning of the capital market as it communicates firms’ performance and governance to shareholders and potential investors, which boost their confidence. This article attempts to provide a brief conceptual framework of VD and corporate governance (CG), and also reviews the empirical literature dealing with relationship between them. To this end, the article uses systematic electronic literature search method, which takes into account 65 empirical studies published over the period 1998–2018. An investigation of empirical findings points to some factors that may have contributed toward the apparent inconsistent findings observed to date. In particular, the article focuses on two intervening factors for variation of results—such as CG system and measurement of explanatory variables. The findings suggest that studies mostly from Anglo-Saxon system (ASS) show complementary relationship between different attributes of CG with VD, whereas in case of communitarian system, studies mostly depict an insignificant impact of CG attributes on VD except for few studies showing their positive/negative impact on VD. However, in case of emerging market system (EMS), some studies show substitutive relationship between board independence (BI) and VD while other CG attributes such as board size (BS), (GD), and audit committee independence (ACI) in most of the studies complement VD supporting the resource-based perspective. Furthermore, the association of ownership structure (OS) and role duality (RD) with VD is mixed. Another factor, which is considered to be added to variation of results, is measurement of explanatory variables whereby albeit studies employed same concepts, operational definition of variables intervenes into the relationship between CG and VD. The findings of this article provide some deeper insights about the complementary and substitutive relationships between CG and VD by integrating diverse empirical findings under different research contexts. Future research can extend to analyze some other institutional factors like investors’ protection rights and legal enforcement, which might also have played some role in influencing the relationship between CG and VD. Furthermore, it is also evident from the review that BS and BI are the most commonly studied CG attributes in relation to VD, whereas attributes like GD and ACI, despite their theoretical relevance and practical importance are least studied in relation to VD, thus signaling the need to focus on these attributes in future studies.

Examining the brand name – mark relationship in emerging markets

2014 ◽  
Vol 23 (4/5) ◽  
pp. 262-267 ◽  
Author(s):  
Richard R Klink ◽  
Gerard A. Athaide
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Brand Names ◽  
Sound Symbolism ◽  
Future Research ◽  
Brand Name ◽  
Intended Meaning ◽  
Content Type ◽  
Brand Marks ◽  
The Relationship

Purpose – The purpose of this research is to investigate whether the brand name–mark sound symbolism relationship extends beyond US marketplaces to emerging markets. Sound symbolism research indicates that consistent brand name meaning can be conveyed across international marketplaces. Yet, prior work has not investigated whether visual branding elements provide consistent meaning across such contexts. Design/methodology/approach – To contrast effects across international contexts, we replicate both studies of Klink (2003) with bilingual subjects in Mumbai, India. Study 1 examined whether the sound symbolic relationship between brand name and brand mark holds in this emerging market. Study 2 investigated whether both the brand name and brand mark together can enhance brand meaning in this context. Findings – Study 1 finds support for the relationship between higher-frequency brand names and brand marks that are angular and smaller in size, with limited support regarding color. Study 2 finds a significant effect for brand marks and a marginally significant effect for brand names on conveying intended meaning. Originality/value – The authors confirm the relationship between the brand mark and brand name; however, color meaning may be less universal than prior theory and research indicates. In addition, the effect of the brand name on conveying sound symbolism meaning may be less important than visual branding elements in emerging markets. Hence, future research may wish to include additional branding elements in experimental stimuli when testing sound symbolism theory.

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