The impracticality of an international “one size fits all” corporate governance code of best practice
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
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited