Introduction

Citation

Kirkbride, J. and Howells, G. (2007), "Introduction", Managerial Law, Vol. 49 No. 5/6. https://doi.org/10.1108/ml.2007.01049eaa.001

Introduction

We are delighted to introduce this special issue of the journal. This issue began at the Academy of Management meeting in Atlanta in 2006 when concerns over the adequacy or otherwise of corporate governance controls post-Enron resulted in a wide range of opinion and response. The dangers of over-regulating and interfering with the enterprise of corporate leadership were strong and were being felt within the USA and in parts of Europe. There was also the growing fear of the inhibition on capital investment and risk. Perhaps in the spirit of seeking to understand and control the international competitive position, particularly for finance and for initial public offerings, the USA and the UK began to hold joint symposia on the conflict between rules-based and principles-based approaches and the need to, perhaps, adopt a common approach. The UK even went as far, through the Department of Trade and Industry, to establish and appoint to an "ideas factory" in this area. Nevertheless agreement and change has been slow, piecemeal and has not halted the loss to the public markets and PLC's of enterprise and board skills, and even finance. The private company markets have grown in finance and acknowledged directorial skills, often encouraged by private equity risk and rewards and the more favourable (often because of their absence) or less restrictive governance controls. But what was happening elsewhere? Does an approach to the legislative and regulatory regime exist that is less reactionary and more grounded in the reality of corporate acts and behaviour? It is precisely a response to those questions that caused the debate and consideration of the meeting in Atlanta in 2006. A different approach, or at least an appreciation and interpretation of the regulatory approach, was growing in Australasia. This developed through debate and through a "processual" view of the corporate world and its regulation. Professor Clive Smallman and Suzanne Benn and Stephen Teo took up the challenge to seek to articulate and evidence that perspective. They have responded admirably and the papers in this issue of the journal reflect the journey thus far. In the true nature of a processual approach it is only a point on the journey but a very important marker. We hope the reader agrees.

James Kirkbride and Geraint Howells