The Critical Appraisal of Limited North European Corporate Governance Standards after Global Crisis, Corporate Scandals and Market Manipulation

2019 ◽  
Vol 2 (1) ◽  
pp. 34-52
Author(s):  
Dinh Tran Ngoc Huy
Keyword(s):  
Corporate Governance ◽  
Market Manipulation ◽  
Sovereign Wealth Funds ◽  
Global Crisis ◽  
Corporate Scandals ◽  
Good Corporate Governance ◽  
Governance Model ◽  
Governance Practices ◽  
Principles And Standards ◽  
European Corporate Governance

This paper mainly analyzes principles and standards of some international and North European corporate governance frameworks which are issued during or after the global crisis.First, it looks at the United Nation Good corporate governance practices and analyzes its strengths and impacts on corporate governance model of a company.Second, it compared the UN standards to generally accepted governance standards of Sovereign Wealth Funds. The paper finds out that during the global crisis time 207-2008, despite taking care of risk management, there still lacks of certain governance standards in these 2 Codes. Then, it analyzes some relative good corporate governance standards in a few North European countries including: Norway and Finland.Third, this paper provides with a short summary of evaluation of these above 2 corporate governance principles in 2 groups which can enable corporations tocompare to their current codes.Last but not least, it aims to realize a limited general set of standards of corporate governance and give proper recommendations to relevant governments and organizations. Additionally, it includes a section for recommending corporate governance for developing countries including Viet Nam.

scholarly journals Analysis of the relationship between the ethical behaviour of board and corporate governance in the case of India

2020 ◽  
Vol 185 (9-10) ◽  
pp. 39-47
Author(s):  
Peter Karacsony ◽  
Keyword(s):  
Corporate Governance ◽  
Organizational Performance ◽  
Ethical Behaviour ◽  
Corporate Scandals ◽  
Positive Effects ◽  
Good Corporate Governance ◽  
The World ◽  
Governance Practices ◽  
The Board Of Directors ◽  
World Economic

Corporate governance has emerged as a very significant tool in business life. Across the world, it is a buzz topic, everybody who has anything to do with the corporate sector talks about corporate governance. In the last decades, the aftermath of corporate scandals and scams leading to the collapse of corporate entities showed need for good corporate governance in India, too. Today, Indian companies are finding new space in global markets for business growth, their interaction with the financial markets and investing community witnessed a significant surge, which ultimately demands effective corporate governance practices. Corporate governance is holding the balance between economic and social goals as well as between individual and community goals. The overall purpose of the study is to provide an overview of corporate governance in India and show how important the leader’s ethical behaviour in corporate governance is. I hypothesized that the ethical behaviour of the board of directors has a significant impact on corporate governance. For the research, I obtained data from the World Economic Forum Competitiveness Report for 38 Asian countries, focusing on India. The methodology I used to analyze data was regression analysis. The results reveal that the ethical behaviour of the board has significant positive effects on corporate governance. An ethical leadership should be employed at Indian companies to mainstream corporate governance to achieve high organizational performance.

Theoretical Disclosure of Board Independence

2021 ◽  
pp. 213-237
Author(s):  
Aarooj Kiran ◽  
Ayesha Ibrahim
Keyword(s):  
Corporate Governance ◽  
East Asian ◽  
Institutional Context ◽  
Independent Directors ◽  
Board Independence ◽  
Corporate Scandals ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Code Of Corporate Governance ◽  
The Impact

In the wake of corporate scandals in major companies like Enron, Tyco, and East Asian crisis have emphasized the need of sufficient number of independent directors on the board for proper oversight and functioning of the company. Code of corporate governance recommends the presence of independent directors for better performance of the company. As board independence ensured good corporate governance practices, it is considered that having independent directors on the board is not for better performance but for better governance. In seeking reasonable answer for these arguments, the purpose of this study is to review some of the literature of board independence with respect to corporate governance theories specifically agency theory, stewardship, and resource dependency theory. All these theories have provided mixed evidences in different studies about the impact and importance of board independence and reason behind these mixed evidences might be the institutional context of different organizations in different countries.

scholarly journals Coupling compliance with values

2014 ◽  
Author(s):  
Μαρία Φωτάκη
Keyword(s):  
Corporate Governance ◽  
Shared Values ◽  
Policy Implications ◽  
Informal Governance ◽  
Cross Sectional ◽  
Listed Firms ◽  
Good Corporate Governance ◽  
Governance Model ◽  
Governance Practices ◽  
Human Side

This dissertation aspires to contribute to a better understanding of the components of good corporate governance. The definition as well as the measurement of sound corporate governance has been an area of intense inquiry since the inception of corporate governance as the principal-agent problem between the owners and the managers of the widely-held corporation by Fama and Jensen in the 1980’s. Up to now the majority of research has attempted to measure good corporate governance using compliance-based approaches. However, a credible link between formal corporate governance controls and firm performance has not yet been established. Furthermore, the financial crisis of 2008 showed a lack of basic corporate governance. These have cast research in identifying other factors, which take into account the ‘human side’ of corporate governance and in fact shape actual corporate governance behavior. This thesis is in this spirit. It aspires to mirror the production function of good corporate governance by identifying potential outcomes of good corporate governance and by investigating the effects of compliance-based and values-based mechanisms on these outcomes. More specifically, the thesis, following a compliance-based approach, develops a formal governance model that investigates whether the degree of compliance with the various structural corporate governance practices is translated into effective corporate governance, as well as other institutional factors that may decouple corporate governance compliance from implementation. Moreover, capitalizing on a values-based approach, this dissertation develops an informal governance model that examines the role of shared values in promoting good corporate governance. Furthermore, the study investigates which approach, the compliance-based or the values-based, is more effective in fostering good corporate governance. Last, the study examines whether good corporate governance, as conceptualized by this dissertation, pays off. Cross-sectional analysis of a sample of 100 Greek listed firms empirically supports the aforementioned ideas. Our findings indicate that the degree of compliance with corporate governance prescriptions claimed in the CG annual statements is not a sine qua non condition for effective corporate governance. Good corporate governance stems primarily from an ethical/relational culture that defines ‘right’ behavior in each and every case, i.e., from coupling compliance with ethical shared values that enhance stakeholders’ relations. Moreover, we show that only the actual implementation of corporate governance guidelines is associated with better firm outcomes, such as CSR engagement. Finally, research and policy implications as well as directions for further research are provided.

scholarly journals Modernising corporate objective debate towards a hybrid model

2020 ◽  
Vol 62 (3) ◽  
pp. 361-390
Author(s):  
Jingchen Zhao
Keyword(s):  
Corporate Governance ◽  
Hybrid Model ◽  
Boards Of Directors ◽  
Learning From Experience ◽  
Corporate Scandals ◽  
Active Involvement ◽  
Governance Model ◽  
Corporate Objective ◽  
Governance Practices ◽  
Corporate Governance Model

In the light of the increasing significance and vivid dynamism of corporate governance practices, a vast amount of literature has been dedicated to the development of modes of corporate governance. This subject deals with the rights and responsibilities of boards of directors, their shareholders and stakeholders, and the balancing of their individual interests with the economic goals of the organisation as well as the interests of society as a whole. A fundamental topic lies at the heart of corporate governance regimes: whose interests should corporations be serving? This article rethinks the shareholder and stakeholder theory debate, treating it as a contemporary topic worth reconsidering in the context of the current climate of corporate scandals and financial crisis. Learning from experience, the article offers some guidance on how to establish an efficient corporate governance model by adopting hybrid model principles for higher investor confidence, bettercorporation shape, more active involvement from shareholders and stakeholders and more considerations of the views and interests of stakeholder groups. Thus, this paper provides some thoughts on corporate objectives in the convergent corporate governance model in order to formulate a hybrid model mechanism and provide some guidance for directors in the carrying out of their function.

Corporate governance and business ethics: Evidence from a sample of Algerian corporations

2020 ◽  
Vol 4 (1) ◽  
pp. 15-29
Author(s):  
Nour El Houda Yahiaoui ◽  
Abdelmadjid Ezzine
Keyword(s):  
Corporate Governance ◽  
Business Ethics ◽  
Structural Model ◽  
Structural Equations ◽  
Path Modeling ◽  
Senior Managers ◽  
Corporate Scandals ◽  
Governance Systems ◽  
Sustainable Value ◽  
Governance Practices

Corporate governance systems are developed to govern corporations, build trust and create sustainable value for all stakeholders. Paradoxically, in spite of massive efforts in developing governance systems, corporate scandals are persisting. Different studies have strongly recommended business ethics as a solution to this paradox. Thus, this study explores if business ethics supports corporate governance practices in a sample of Algerian corporations. The study used a mixed methodology; qualitative: since this subject is poorly addressed in the Algerian context that requires an exploratory study. Quantitative by developing a structural model demonstrating the relationship between business ethics and corporate governance, Data for the study were collected by means of a questionnaire distributed on an anonymous basis to corporations’ senior managers in Sidi Bel Abbes district. Treatment of collected data is done using two types of analysis: the structural equations modeling approach by using the PLS Path approach (PLS Path Modeling) and linear regression. The study finds out that business ethics leads to better levels of corporate governance and supports its practices; and the reason is mainly due to an implicit involuntary commitment to laws as a minimum required level of compliance, and that the protection of stakeholders’ rights are the most important corporate governance’s dimension affected by business ethics.

CEO behavior and sustainability performance: the moderating role of corporate governance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amel Kouaib ◽  
Asma Bouzouitina ◽  
Anis Jarboui
Keyword(s):  
Corporate Governance ◽  
Real Estate ◽  
Corporate Sustainability ◽  
Least Square ◽  
Content Type ◽  
Sustainability Performance ◽  
Corporate Sustainability Performance ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
The Impact

PurposeThis paper explores how the tension between a firm's CEO overconfidence feature and externally observable hubris attribute may determine the level of corporate sustainability performance. This work also contemplates the impact of the moderator “corporate governance practices.”Design/methodology/approachThis study uses a sample of 658 firm-year-observations using a sample of European real estate firms indexed on Stoxx Europe 600 Index from 2006 to 2019. To test the developed hypotheses, feasible generalized least square (FGLS) regression is applied.FindingsFindings suggest that a good corporate governance score strengthens the positive effect of the psychological bias (CEO overconfidence) on corporate sustainability performance while it fails to attenuate the negative effect of the cognitive bias (CEO hubris).Research limitations/implicationsThe research provides an overview of the impact of CEO personality traits on the corporate sustainability performance level in the European real estate sup-sector. As corporate governance can have a major impact to control these traits, the authors recommend European real estate companies to improve their corporate governance practices.Originality/valueThis study contributes to the existent literature this gap with two empirical novelties: (1) providing a novel insight into sustainability involvement using a sample of European real estate sup-sector and (2) investigating the moderating effect on the link between CEO psychological and cognitive biases and sustainability performance. This study provides empirical evidence that entrenchment problems arising from CEO hubris would not be mitigated by a good corporate governance practice.

Insider Trading Laws and Corporate Governance Impact on Investment Decision

2021 ◽  
Vol 3 (2) ◽  
pp. 126-137
Author(s):  
Sadaf Khan ◽  
Ubaid Ur Rehman
Keyword(s):  
Corporate Governance ◽  
Insider Trading ◽  
Positive Impact ◽  
Investment Decision ◽  
Investment Decisions ◽  
Future Research ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
The Government ◽  
The Impact

This research aims to analyze the impact of insider trading laws and corporate governance on investment decisions. For this purpose, the data of 400 potential and actual investors employed who provided their feedback on a structured questionnaire. When the data is collected, it was cleaned. The normality of data and reliability of items were also checked and within limits. Simple Regression was applied to test hypotheses. It was concluded that the perception of insider trading laws and corporate governance have a positive impact on investment decisions. The study has wide implications and the government and corporation both can be beneficial from its insight and findings, and exercise good corporate governance practices and follow stringent insider trading laws. The study also paves the way for future research.

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