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The impracticality of an international “one size fits all” corporate governance code of best practice

Marlene Davies (Glamorgan Business School, University of Glamorgan, Pontypridd, UK)
Bernadette Schlitzer (Ernst & Young, Germany)

Managerial Auditing Journal

ISSN: 0268-6902

Article publication date: 27 June 2008

Abstract

Purpose

The purpose of this paper is to review corporate governance literature from an international perspective in terms of having a global code of corporate governance.

Design/methodology/approach

Using a wide ranging literature review, the paper looks at the issue of a global corporate governance code of best practice from legal, corporate ownership structure and financial systems perspectives and the consequent/divergence issues that arise.

Findings

The paper supports the hypothesis that the “one size fits all” approach to corporate governance, particularly the Anglo Saxon model, is not necessarily the right approach from a global perspective. Convergence on fundamental features of shareholder protection, independence of directors and establishment of committees may be the preferred way forward.

Practical implications

The acceptance of a global corporate governance code is limited due to the adaptations in the business environment, investor confidence and corporate successes and failures.

Originality/value

The analysis of the framework provides an interesting paper for corporate governance researchers.

Keywords

Citation

Davies, M. and Schlitzer, B. (2008), "The impracticality of an international “one size fits all” corporate governance code of best practice", Managerial Auditing Journal, Vol. 23 No. 6, pp. 532-544. https://doi.org/10.1108/02686900810882093

Publisher

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited