Search results

Governance can often be assessed as one part of directing companies’ action toward something better. This study examines how governance quality at the country level and firm level can affect sustainability performance that aligns with sustainable development goals (SDG). Prior academic literature explains that if a country has a low institutional condition, it is a great challenge to implement sustainability. However, the internal awareness of the company to implement sustainability plays an important role as well. To examine the research question, this study uses the banking sector as a research sample with an observation period from 2017 to 2019. Prior literature overlooks research in the banking sector and does not feature country-level governance with firm-level governance. The data were collected either from the annual report or sustainability report, which comprises 141 companies, with the total observation of 423 firm-year. This study used panel data regression analysis and was based on the Hausman Test; it shows that random effect is used to test the hypothesis. This research finds that good quality governance at the country level, results in good sustainability performance. However, contrary to expectations regarding the quality of firm-level governance, which is thought to be positively related to sustainability performance, this study found a negative relationship. The argument that might answer the finding is the existence of governance conditions at the state level and at the firm level that mutually subsidize each other. This research contributes to policymakers continuing to provide counseling and improve institutional conditions to motivate companies to support the achievement of the SDGs. Companies should also pay attention to the effectiveness of their internal governance and strive to use stakeholder opinions as a guide in the realization of SDGs.

Corporate governance research based on agency theory has been criticized for being “under-contextualized,” and for evaluating various governance practices independently. To address both criticisms, we take a configurational approach and show how firm-level governance practices interact with informational asymmetries associated with a firm’s industry. By examining foreign Initial Public Offerings (IPOs) that have chosen to list on London stock exchanges, we demonstrate that an assessment of the firm-level corporate governance configurations is incomplete without taking into account the firm’s industry affiliation. Our use of fs/QCA underscores the possibilities configurational approaches have in advancing theories of corporate governance.

The importance of corporate governance was recognized aftermath the major corporate scandal and regulators all over the world tightened regulations. When Sarbanes-Oxley Act was passed, President of United States George W. Bush proclaimed that “the era of low standards and false profits are over.” Following the path, SEBI (Securities and Exchange Board of India) introduced clause 49 to the listing agreement to enhance transparency and integrity to financial statements. Adequate disclosures thus ensure good governance. The concept of corporate governance is more than a decade old in India. Following Satyam Scandal, Indian Industry groups and regulators advocated a number of reforms which led to MCAs (Ministry of Company Affairs) Corporate Governance Voluntary guidelines 2009 to encourage and guide companies to adopt superior practices like appointing board committees, the appointment and rotation of external auditors, and creating a whistle blowing mechanism. The new Companies Amendment bill made the corporate governance disclosures even more stringent. Hence this is an attempt on our part to construct an objective overall corporate governance score to reflect the whole firm governance practices as per the disclosure requirements of clause 49 of the listing agreement of SEBI as well as the insights from the various academic studies to score each element of corporate governance and study the impact of governance on corporate performance represented by Tobin Q.

Access to personal data is key to many of the most successful recent business models. These models rely on individuals outside of traditional organizational boundaries as their product, content providers, and customers. The topic of organizational boundaries is central to organizational research, and these models raise questions about the permeability of these new forms’ boundaries. Herein I elaborate on data-based business models, the organizational field that has emerged around data governance issues, and the institutions that have formed around it at different stages, by various actors. I also explore the interplay of institutional field and organizational boundaries, to identify how field-level issues influence the permeability of organizational boundaries.

To determine what role overconfidence plays in the forced removal of CEOs internationally.

The study makes use of the Fortune Global 500 list.

We find that overconfident CEOs face significantly greater hazards of forced turnovers than their non-overconfident peers. Regardless of important differences in culture, law, and corporate governance across countries, overconfidence has a separate and distinct effect on CEO turnover. Overconfident CEOs appear to be at greater risk of dismissal regardless of where in the world they are located. We also discover that overconfident CEOs are disproportionately succeeded by other overconfident CEOs, regardless of whether they are forcibly removed or voluntarily leave office. Finally, we determine that the dismissal of overconfident CEOs is associated with improved market performance, but only limited enhancement in accounting returns.

This study is unique with its examination of overconfidence among global CEOs rather than being limited to U.S. chief executives. It also provides insight into how overconfidence is related to national cultures, legal systems and corporate governance mechanisms.

Purpose – This chapter discusses the role that indices of corporate governance have had in comparative corporate governance research.

Design/Methodology/Approach – The authors begin with a short discussion of what corporate governance is and its main debates. Then, the authors review the main indices (which are also summarized in Table 1), highlighting their strengths and limitations as well as describing some of the findings that emanate from them. Then, the authors discuss the methodological and conceptual assumptions of corporate governance indices that may compromise their construct validity. The authors conclude with some encouraging suggestions for key methodological and research design issues to take into account in future comparative corporate governance.

Findings – Many methodological issues in the measuring and analysis of (comparative) corporate governance remain to be solved. First, although corporate governance practices have a direct effect on some of the firms’ strategic decisions, they may only have an indirect effect on firm performance. Second, it is possible that, after all, causality goes the other way around, i.e., the firm performance explains the adoption of certain governance practices. Third, there are also important challenges in measuring firm financial performance as well as measuring and comparing corporate governance effectiveness between firms from different governance settings.

Originality/Value – This is one of the first chapter to give an overview of the most current corporate governance indices, both academic and commercial, to discuss their underlying assumptions and limitations, and, finally, to provide specific directions for future research regarding comparative corporate governance.

Effective mechanisms for corporate governance are essential for market-based economic systems. This chapter addresses the necessity of corporate governance research to address the competing goals of various stakeholders in the firm: managers, suppliers of financial capital, and other stakeholders. The review of literature reveals that firm-level complexity, as well as diversity of national business systems, are important for understanding corporate governance practices and regulations around the world.

Purpose – This study aims at presenting an overview, development, and process of current corporate governance practices in Bangladesh.

Design/Methodology/Approach – Based on New Institutional Sociology (NIS) as a theoretical framework and by using archival data, this study highlights the roles of key institutional forces in reinforcing the existing corporate governance practices in Bangladesh.

Findings – This study notes that corporate governance practices in Bangladesh are still at infancy. While Bangladesh is trying to adopt many international corporate governance best practices for institutional legitimacy, the weak institutional enforcement regime, along with the absence of an effective check and balance, poses serious challenges to the firm-level good corporate governance practices in Bangladesh. The absence of isomorphic pressures to regulate the firms leads to many incidences of noncompliance.

Practical implications – This study takes part in the following global debate: whether corporate governance in an emerging economy is a reality or an illusion.

Originality/Value – This study seeks to contribute to the increasing literature by recognizing the interest of readers, academics, practitioners, and regulators to gain more insight and understanding of corporate governance practices in an emerging economy, such as Bangladesh.

The paper assembles data on over 1,000 manufacturing and services firms in India for the entire post-reform period from 1992 through 2002 to examine the association between corporate governance and monetary policy. The findings suggests that: (a) public firms are relatively more responsive to a monetary contraction vis-à-vis their private counterparts; and (b) quoted firms lower their long-term bank borrowings in favour of short-term borrowings, post monetary tightening, as compared with unquoted firms. A disaggregated analysis based on firm size and leverage above a certain threshold validates these findings. The study concludes by analyzing the broad policy implications of these findings.