scholarly journals Corporate governance: Understanding important contingencies

2005 ◽  
Vol 2 (4) ◽  
pp. 41-50 ◽  
Author(s):  
Morten Huse
Keyword(s):  
Corporate Governance ◽  
Transition Economies ◽  
Board Members ◽  
Contextual Variables ◽  
Governance System ◽  
The Core ◽  
Governance Systems ◽  
Governance Process ◽  
External Actors ◽  
Made In

The objective of this paper is to explore important contingencies for boards and governance designs. The paper is made in a setting where governance in SMEs in transition economies is to be developed, and knowledge from advanced market economies constitutes the framework to be built on. The core of the paper is the presentation of six groups of important contextual variables that must be analyzed and understood when corporate governance systems shall be developed. The framework presented in the paper includes understanding the perspectives of both internal and external actors in the corporate governance process, and that the design of a governance system will include issues related the board working style as well as thee board members.

scholarly journals Core corporate governance dilemmas facing boards: a South African perspective

2011 ◽  
Vol 12 (2) ◽  
pp. 194-210
Author(s):  
Hyram Serretta ◽  
Mike Bendixen ◽  
Margie Sutherland
Keyword(s):  
Corporate Governance ◽  
South African ◽  
Delphi Technique ◽  
Board Members ◽  
International Literature ◽  
The Core ◽  
Good Corporate Governance ◽  
Key Factor ◽  
African Perspective ◽  
Managing Complexity

Directors and boards face many challenges in terms of managing complexity. A key factor of success in practicing good corporate governance is the board’s ability to cope with paradox. The purpose of this research has been to explore the core corporate governance dilemmas facing boards. The investigation was qualitative in nature using the Delphi technique. Six core corporate governance dilemmas facing board members were identified one of which is not mentioned in the international literature. The findings should provide directors with an ability to identify the nature of the paradoxes they need to respond to.

scholarly journals COMPLIANCE OF CORPORATE GOVERNANCE IN BOSNIA AND HERZEGOVINA WITH EUROPEAN UNION STANDARDS

2018 ◽  
pp. 340-355
Keyword(s):  
European Union ◽  
Corporate Governance ◽  
Bosnia And Herzegovina ◽  
Legal Framework ◽  
Regulatory Framework ◽  
Quality Level ◽  
The European Union ◽  
Governance System ◽  
Governance Systems ◽  
Principles And Standards

Corporate governance provides an answer to the question who controls the corporation and how. It involves a set of relationships between management, shareholders and stakeholders. Corporate governance in Bosnia and Herzegovina is within the legal jurisdiction of entities, and consequently there are two substantially aligned and yet completely distinct corporate governance systems, which separates Bosnia and Herzegovina as a state in the international environment into a specific category in terms of corporate governance. This paper will analyze ownership concentration in order to identify the characteristics of the corporate governance systems, then it will present the principles on which the legal framework for corporate governance in Bosnia and Herzegovina is defined, compare the business transparency standards with the transparency directive in the EU, and measure the quality level of corporate governance in order to define key areas for improvement of corporate governance in Bosnia and Herzegovina. The development and characteristics of the corporate governance systems in Bosnia and Herzegovina will be explored and compared with the regulatory framework and standards of corporate governance in the European Union. Special emphasis is on comparing the transparency principles and standards of corporations in Bosnia and Herzegovina with corporations in the European Union. The aim of the research is to compare the regulatory framework and characteristics of the corporate governance system in corporations in Bosnia and Herzegovina with the standards in the European Union, to identify similarities and differences and to define key areas for improvement of corporate governance in Bosnia and Herzegovina.

The effect of borrower country financial system and corporate governance system types on the spread of syndicated loans

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nuno Moutinho ◽  
Carlos Francisco Alves ◽  
Francisco Martins
Keyword(s):  
Corporate Governance ◽  
Governance System ◽  
Financial Systems ◽  
Content Type ◽  
Financial Firms ◽  
Governance Systems ◽  
Corporate Governance System ◽  
Lower Interest Rate ◽  
Loan Spreads ◽  
The Cost

Purpose This study aims to analyse the effect of borrower’s countries on syndicated loan spreads, featuring countries according to institutional factors, namely, financial systems and corporate governance systems. Design/methodology/approach This study is an empirical investigation based on a unique sample of more than 85,000 syndicated loans from 122 countries. The paper uses standard and two-stage least squares regression analysis to test whether the types of financial and corporate governance systems affect loan spreads. Findings The paper finds that borrowers from countries with financial systems oriented towards the banking-based paradigm pay lower interest rate spreads than those from countries with financial systems oriented towards the market-based paradigm. In addition, there is evidence that borrowers from countries with more developed financial systems pay lower spreads. The results also show that borrowers from countries with an Anglo-Saxon governance system pay higher spreads than borrowers from countries with a Continental governance system. Research limitations/implications This study does not consider potential promiscuous relationships that can arise at the ownership structure and governance level between banks and borrowers and may affect loan spreads. Practical implications This study suggests that financial and corporate governance systems are essential factors in the financial intermediation process. Furthermore, the evidence indicates that corporates with higher potential agency costs and higher potential information asymmetry are requested to pay higher spreads. Therefore, the opportunities to such corporates invest optimally tend to be scarcer. Originality/value The paper highlights the impact of institutional factors on the cost of financing, characterising the countries according to the type of financial system and the type of corporate governance system. The study finds that borrowers from countries with bank-based financial systems pay lower interest rate spreads than those from countries with market-based financial systems. The paper also highlights how the level of financial development affects the cost of financing. The paper focusses on non-financial firms, unlike financial firms, which have been the focus of several empirical studies on topics relating to the cost of funding and corporate governance.

Corporate Governance-Systeme und Unternehmensfinanzierung - Empirische Befunde für deutsche Großunternehmen / Corporate Governance-Systems and Corporate Financing – Empirical Evidence for large corporations in Germany

ORDO ◽  
2013 ◽  
Vol 64 (1) ◽  
Author(s):  
Elmar Gerum ◽  
Sascha H. Mölls
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
Sich Eine ◽  
Governance System ◽  
Corporate Financing ◽  
Governance Systems ◽  
Corporate Governance System ◽  
Large Corporations

ZusammenfassungDas Ziel des Beitrages ist es zu prüfen, ob und inwieweit sich das deutsche Corporate Governance-System, insbesondere die Unternehmensfinanzierung, im Zuge des Systemwettbewerbs an internationale Standards angeglichen hat. Dazu wird das deutsche System zunächst im Kontext alternativer Corporate Governance-Systeme verortet. Danach werden empirische Befunde zur Struktur der Unternehmensfinanzierung sowie flankierender Institutionen in deutschen Großunternehmen präsentiert und erklärt. Es zeigt sich, dass heute eine effiziente Mischfinanzierung typisch ist, die die traditionellen Vorteile einer Bankenfinanzierung mit den Möglichkeiten des Kapitalmarkts kombiniert. Im Lichte der Befunde empfiehlt sich eine Neuorientierung von Forschung und Politik zu Corporate Governance.

The Role of Finance and Corporate Governance in National Systems of Innovation

2007 ◽  
Vol 28 (10) ◽  
pp. 1461-1481 ◽  
Author(s):  
Andrew Tylecote
Keyword(s):  
Corporate Governance ◽  
Three Dimensions ◽  
Governance System ◽  
Systems Of Innovation ◽  
Governance Systems ◽  
Variation Patterns ◽  
Technological Advantage ◽  
Corporate Governance System ◽  
National Systems

Firms are central actors in innovation, and their actions are much affected by their corporate governance and the finance available. Thus a country's finance and corporate governance system is a key element of its national system of innovation. The technological regimes of sectors (and sub-sectors) vary in ways that affect the demands innovation makes on the financial and corporate governance system. Finance and corporate governance systems (FCGSs) vary among countries in their ability to meet these demands. By setting three dimensions of regime variation alongside the three corresponding dimensions of FCGS variation, patterns of relative and absolute technological advantage among economies can be largely explained — particularly when the focus is on nationality of firm rather than location of activity.

scholarly journals Corporate municipal governance for effective and efficient public service delivery in South Africa

2014 ◽  
Vol 3 (4) ◽  
pp. 98-106 ◽  
Author(s):  
Paulin Mbecke
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Service Delivery ◽  
Local Governments ◽  
Good Governance ◽  
Governance System ◽  
Municipal Governance ◽  
Governance Systems ◽  
Set Up ◽  
Code Of Corporate Governance

This research acknowledges the current service delivery chaos manifested through numerous protests justifying the weakness of the “Batho Pele” good governance principles to facilitate, improve and sustain service delivery by local governments. The success of corporate governance in corporate companies and state owned enterprises is recognised prompting suggestions that local governments should too adopt corporate governance principles or King III to be effective. The research reviews the King III and literature to ascertain the lack of research on corporate governance in local governments in South Africa. Considering the particular set-up of local governments, the research doubts the successful application of King III in local governments. Through critical research theory, the current service delivery crisis in local governments in South Africa is described. The success of corporate governance systems in the United Kingdom and Australian local governments justify the need for a separate corporate municipal governance system as a solution to the crisis. A specific change of legislation and corporate governance guidelines is necessary to address the uniqueness of local governments. Hence, corporate municipal governance should be compulsory and based on ten standardised good governance principles via a code of corporate governance and a corporate governance framework responding to specific prerequisites for success

scholarly journals Corporate governance problem and its implications for transition economies

2008 ◽  
Vol 5 (3) ◽  
pp. 335-348
Author(s):  
Miroslav Mateev
Keyword(s):  
Corporate Governance ◽  
Transition Economies ◽  
Governance System ◽  
Active Involvement ◽  
Concentrated Ownership ◽  
Professional Managers ◽  
Corporate Governance System ◽  
Privatized Firms ◽  
And Control ◽  
Main Message

This paper examines the corporate governance problem in Central and Eastern European (CEE) countries and the major implications of highly concentrated ownership in these countries on their economic development. Our main message is that ownership and control in transition economies will remain highly concentrated in short-term aspect, and regulatory intervention should focus on protecting minority shareholder interests while maintaining the incentives for entrepreneurship and large shareholder monitoring. We also argue that the corporate governance system in transition economies will have to rely on active involvement and monitoring by large shareholders, even after the emergence of a class of professional managers. Moreover, our empirical results support Berglöf and Pajuste (2003) findings that controlling shareholders (strategic investors) are critical to the successful restructuring of privatized firms; minority protection is also important to attract outside capital, but it may reduce the disciplinary role of the market for corporate control

scholarly journals The Effectiveness of Corporate Governance in Uganda: The Case of Private Companies

2021 ◽  
Vol 9 (5) ◽  
Author(s):  
David Lwanga ◽  
Doreen Basemera
Keyword(s):  
Corporate Governance ◽  
Private Sector ◽  
Extensive Review ◽  
Review Of Literature ◽  
Governance System ◽  
Private Companies ◽  
Governance Systems ◽  
Corporate Governance System ◽  
Ethnographic Observation ◽  
Key Issues

This paper examines the effectiveness of rules, procedures and Acts as instruments of corporate governance in Uganda, with interest in the performance of private companies. An extensive review of literature and ethnographic observation of the dynamic of corporate governance in private companies indicate that much as the private companies have adopted a hybrid regulatory framework of corporate governance, loopholes do still exist that have hindered the effectiveness  of these instrument in the performance of private companies. Therefore there is need for strengthening corporate governance systems; however some of the weakness are attributed to the unsolved debate on key issues of corporate governance globally that trickles down to Uganda’s young corporate governance system in the private sector.

scholarly journals Interconnection of functional subsystems of corporate governance

2020 ◽  
Vol 12 (1) ◽  
Author(s):  
Svetlana Sharokhina ◽  
Olga Pudovkina
Keyword(s):  
Corporate Governance ◽  
Management System ◽  
Enterprise Management ◽  
Corporate Management ◽  
Control Analysis ◽  
Governance System ◽  
Governance Process ◽  
Enterprise Management System ◽  
Accounting Control ◽  
Management Functions

The article discusses the features of corporate governance associated with the distribution of ownership and management functions. The components of corporate governance elements are considered in two directions: from the standpoint of the requirements of the current law; from the position of identifying corporate governance with the overall management system in the enterprise. The necessity of applying a systematic approach to the allocation of management functions is justified and their relationship in the corporate governance system is determined. The authors argue that in analyzing corporate governance, one cannot identify it with the enterprise management system in general and exclude the influence of owners on the corporate governance process. The authors propose from the set of corporate governance functions called the following list of functions arranged according to their priority, ambiguity, essence: planning, organization, accounting, control, analysis, regulation. The article describes the goals of implementing individual corporate governance functions and outlines the relationship of some functions with others. The authors call the features of the implementation of the analytical function associated with the opposite of interests. So, if for the management of the company carrying out analytical calculations should contribute to the scientific justification of management decisions, then carrying out analytical calculations by owners is most often aimed at assessing the effectiveness of the enterprise through the activities of management personnel. It is substantiated that the need to study the analytical subsystem, taking into account the requirements of a system-functional approach, is dictated by the fact that it is a subsystem in the general corporate management system, which has an informational relationship with other functional subsystems and is implemented both by the owners and the management of the enterprise. In the course of the study, it was found that the main feature of corporate governance is associated with the distribution of the overall management system between the enterprise management and its owners. At the same time, certain functions are implemented only by certain corporate governance bodies, while others are inherent to both owners and management.

scholarly journals Corporate governance and company performance in Italy: Corporate law and regulation perspective

2019 ◽  
Vol 1 (1) ◽  
pp. 24-35 ◽  
Author(s):  
Carlo Caserio ◽  
Sara Trucco
Keyword(s):  
Corporate Governance ◽  
Gender Diversity ◽  
Future Research ◽  
Company Performance ◽  
Board Governance ◽  
Corporate Board ◽  
Governance System ◽  
Research Areas ◽  
Participation Of Women ◽  
Governance Systems

This paper proposes an extensive analysis of corporate governance and corporate board practices in Italy, under different perspectives. First of all, through a literature review, the research aims to analyze the main effects of laws and regulations on corporate board practices in the Italian setting by taking into account the most important corporate board models in different types of companies. This study also highlights the different functions and responsibilities assigned to the boards, bodies and boards’ members, according to the governance system implemented – classic/traditional, dualistic, monistic. For each of these systems, the main issues are presented and the most important critical points are illustrated. Regarding the functions and the responsibility of the board members, the link between the board governance and company performance is discussed on the basis of the main literature, as well as the laws concerning the participation of women to the boards’ activities. Furthermore, the effects of gender diversity on company performance is analysed taking into account the main studies on this topic. Finally, the paper presents some conclusions and future research areas on the aforementioned topics: it proposes future empirical analysis on the effects that different governance systems, different board compositions and different roles of directors, as required by the law, may have on the performance of listed/unlisted companies and on family/non-family companies.

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