A Larger Role for Institutional Investors

Charkham, Jonathan

doi:10.1093/acprof:oso/9780198287889.003.0006

Cited by 18 publications

(9 citation statements)

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“…In fact, the very challenge to create a better and healthy atmosphere in the business arena seems to rest on the health of its corporate governance mechanism. Regarding the commercial ambience or local business environment of a country, Charkham (1994) has summed up with his intuitive insight that government arrangements in the business sector not only make up a crucial part of an institutional framework but also are an economic necessity, a political requirement and a moral imperative on which rests the commercial success and economic prosperity of a country.…”

Section: Literature Reviewmentioning

confidence: 99%

Factors influencing firm’s local business environment in home country context

Nag

Chatterjee

2018

JIBR

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Purpose Indian and Chinese businesses are slowly making advances in each other’s markets. The purpose of this study was to understand factors that influence the business environment of a country and how does it compare between India and China. Design/methodology/approach The study uses firm-level survey data from the World Bank’s Enterprise Surveys. The study considered survey data for 2,700 Chinese firms and 9,281 Indian firms. Exploratory factor analysis and structural equation modeling were used to analyze the factors that drive the business environment in both countries and why differences appear. Findings The data set reveals different factor structures for India and China. Across both the countries, infrastructure support and governance play a major role in shaping the business landscape, though in the case of India, regulatory dynamics play a crucial role. The study concludes that these differences drive the basic difference in business environment across both countries. Research limitations/implications The study considers only the formal sector, and informal businesses have been left out because of paucity of data. The dynamics of informal business sector can be considered for future studies. Practical implications While making market entry or investment decisions globally, businesses can analyze country-specific environmental factors through this framework. As the study is based on the perceptions of businesses, policy-makers can also focus on these factors to attract businesses to specific countries or regions. Originality/value The study is an original research study. The study adds to the existing academic literature and is expected to help policy-makers and senior managers in focusing on specific aspects of business environment when developing policies or taking market entry decisions.

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Section: Literature Reviewmentioning

confidence: 99%

Factors influencing firm’s local business environment in home country context

Nag

Chatterjee

2018

JIBR

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“…On the Shareholder Theory, we have: (i) The Principal-Agent or Finance Model, (Jensen and Meckling, 1976;Manne, 1965), which states that the purpose of a corporation is the maximisation of shareholders' profits as they (the shareholders) are the owners of the corporations and bear the highest risks but there are agency problem. (ii) The Myopic Market Model (Charkham 1994a(Charkham , 1994b(Charkham and 1989Sykes, 1994), which states that the purpose of a corporation is the maximisation of shareholders' profits but corporations are concerned with short-term market value, and sacrifice the long-term value of the company. On the Stakeholder Theory, the models include: (iii) The Executive Power Model (Hutton, 1995;Kay and Silberston, 1995), which claims that the purpose of a corporation is the maximisation of corporate wealth as whole but this creates the problem of the abuse of directors' power for their own self-interest and (iv) The Stakeholder Model (Freeman, 1984;Evan and Freeman, 1993;Blair, 1995), which leads to the maximisation of stakeholders' wealth, but with an absence of stakeholder involvement in the running of the company.…”

Section: The Four Competing Models Of Corporate Governancementioning

confidence: 99%

A review of the two main competing models of corporate governance: the shareholdership model versus the stakeholdership model

Nwanji¹,

Howell²

2007

COC

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This paper reviews the impact of the shareholdership and stakeholdership models in guiding managers through the most appropriate way of delivering business objectives. The shareholder model is the traditional Anglo-American system of corporate governance, which focuses on the maximisation of shareholder wealth, while the stakeholder model is considered to be exemplified by the German system of corporate governance and focuses on meeting the needs and expectations of a wider range of stakeholder groups. The results from this study indicate that a combination of both models could enable management to deliver the needs of stakeholders groups, while in the long term maximizing wealth for the shareholders

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“…Even the observation that one half of publicly traded stocks are in the hands of institutions does not much mitigate weak shareholder control of directors: the proportion is not so high by international comparison. 11 The 1990s were characterized by considerable shareholder acquiescence in sloppy corporate governance. 12 Onto this culture was grafted a long period of stock market boom in which, provided shares in a company continued to rise, it made no sense for a fund manager to break ranks and sell shares just because of worries over corporate governance.…”

Section: What Went Wrong?mentioning

confidence: 99%

Enron, corporate governance and deterrence

Dnes

2005

Manage Decis Econ

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In this paper, I investigate the lessons from the financial scandals surrounding companies like Enron and WorldCom. These companies have generated concerns leading to the legal reform of corporate governance in America, and to the revision of voluntary, self-regulatory codes in Europe. The passage of time since the Enron debacle shows that critics were too quick to criticize, since the required adjustments have more the nature of minor adjustments to regulations. Copyright © 2005 John Wiley & Sons, Ltd.

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A Larger Role for Institutional Investors

Cited by 18 publications

References 0 publications

Factors influencing firm’s local business environment in home country context

Factors influencing firm’s local business environment in home country context

A review of the two main competing models of corporate governance: the shareholdership model versus the stakeholdership model

Enron, corporate governance and deterrence

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