A Literature Review on Corporate Governance Mechanisms: Past, Present, and Future*

Vito, Jackie Di; Trottier, Kim

doi:10.1111/1911-3838.12279

Cited by 18 publications

(12 citation statements)

References 112 publications

(139 reference statements)

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“…Relatedly, Chen et al (2014) and Cho and Lee (2017) propose integrating agency theory and a resource-based theoretical perspective to understand the nexus between governance and internationalisation in family firms. Di Vito and Trottier (2021, p.17) suggest advancement in the CG space will occur through the employment of a greater diversity of theory from the areas of management and psychology, such as sensemaking, institutional theory and strategic renewal. Jain and Jamali (2016, p. 267) urge researchers to explore theories from “sociology and socio-psychology” when exploring expanding board roles and the influence of stakeholder groups other than shareholders on CG.…”

Section: Discussion and Future Researchmentioning

confidence: 99%

“…SMEs are widely variable across, for example, national, regional and sectoral contexts and internally regarding growth intentions and outcomes. With Di Vito and Trottier (2021), we caution against a "one-size-fits-all" approach to understanding CG. Research must be conducted in a way that captures and enables knowledge generation from this heterogeneity.…”

Section: Contextualised Researchmentioning

confidence: 99%

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SME corporate governance: a literature review of informal mechanisms for governance

Handley

Molloy

2022

MEDAR

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Purpose This paper takes a structured literature review (SLR) approach to identify gaps in the literature and suggest future research opportunities. It focuses on corporate governance (CG) performed outside the formal board of directors’ structure and examines research of alternative CG of small and medium-sized entities (SMEs). Design/methodology/approach The authors use the SLR method to search the Scopus database, extracting and synthesising findings relating specifically to SMEs’ CG. These are tabulated and described using bibliometric software. Findings The authors highlight an absence of tailored theoretical approaches to understanding CG in SMEs, which differs from the governance of larger entities. They also find evidence of alternative governance structures in SME CG. Research limitations/implications Further research should embrace management and other theoretical perspectives and expanded methodologies, nuances in understanding offered in contextualised settings and awareness of practical implications to better understand the specific setting of CG in SMEs. Practical implications SMEs seek to access the scarce resources and skills external to their formal CG structures. Regulators and resource providers should mobilise facilitation and training for this expansion. Originality/value The authors synthesise a large body of literature to extract findings specific to SMEs. A unique contribution is our focus on alternative forms of CG in SMEs. Evidence of alternative boards points to resolutions for human capital shortages in SMEs.

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Section: Discussion and Future Researchmentioning

confidence: 99%

Section: Contextualised Researchmentioning

confidence: 99%

SME corporate governance: a literature review of informal mechanisms for governance

Handley

Molloy

2022

MEDAR

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“…The most common challenge that is cited in bibliometric analysis studies and systematic literature reviews is coming up with an appropriate search query that strikes a balance between getting the maximum articles while at the same time minimising the frequency of irrelevant articles (Romanelli et al , 2021). To come up with the appropriate search query, this study reviewed previous studies that have been done on the systematic and bibliometric analysis of corporate governance studies (such as Alex, 2021; Almaqtari et al , 2020; Di Vito and Trottier, 2021). The final search string formed, guided by previous literature, was {corporate governance} OR {board structure} OR {board composition*}.…”

Section: Methodsmentioning

confidence: 99%

“…The majority of the systematic reviews on corporate have tended to concentrate on the developed (Di Vito and Trottier, 2021) markets and emerging markets (Almaqtari et al , 2020) and frontier markets (Alex, 2021). Less has been done on synthesising literature on corporate governance using “standalone [2]” markets as well as fragile markets.…”

Section: Introductionmentioning

confidence: 99%

Corporate governance in a weak legal environment: a systematic review focusing on Zimbabwe

Nyakurukwa

Seetharam²

2022

QRFM

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Purpose Literature shows that corporate governance matters more in countries with weak legal environments. The purpose of this study is to synthesise and map research that has been done so far on corporate governance in Zimbabwe, a country that has been characterised by weak legal systems and lack of respect for property rights. Design/methodology/approach A systematic review and bibliometric analysis of 20 articles indexed in the Scopus and Web of Science databases was carried out to establish the trends and evolution of corporate governance in Zimbabwe. Findings The articles reviewed looked at the association between corporate governance attributes and firm performance, disclosure of information and economic growth. The proportion of independent directors was found to significantly affect firm performance and information disclosure in most of the studies. The majority of the studies used descriptive statistics and simple regression in their methodologies. The stakeholder theory is the most used in the studies reviewed. Originality/value The study highlights the need to strengthen the state infrastructure that enhances corporate governance at the firm level. When state-owned companies adhere to good corporate governance practices, this can cascade to the private sector.

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“…Proportional to the volume of studies, MFIs have been rarely addressed. Second, either for nonfinancial institutions or for MFIs, the empirical results are far from consensus (Di Vito and Trottier, 2021, for a recent literature review). Third, most MFI governance studies are focused on the impact of internal governance.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

The influence of external governance mechanisms on the performance of microfinance institutions in Togo

Gadedjisso-Tossou

Kouevi

Gueyié

2023

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Purpose This paper aims to assess the effects of external governance mechanisms on the performance of microfinance institutions (MFIs) in Togo. Design/methodology/approach Using annual time series data from a sample of 30 MFIs during the period 2011–2015, the authors apply panel data econometrics in their estimations. Findings The results indicate that the notation by a rating agency positively and significantly affects the financial return of MFIs. The quality and the regularity of the audits negatively and significantly influence the financial performance (measured by return on assets and operating self-sufficiency) but favorably and significantly influence social performance (increased number of active borrowers (NAB) and reduced size of loans). Furthermore, supervision increases the amount of individual loans but decreases the NAB, which means deterioration in social performance. Overall, this paper shows that external governance mechanisms significantly affect the performance of Togolese MFIs, but with varying effects depending on the mechanism considered. Research limitations/implications The sample size of 30 MFIs is small, and the geographic coverage of the study is restricted to MFIs operating in the city of Lomé, Togo. The authors did not have access to the information regarding the portfolio at risk at 30 days, even though it is a measure of financial performance. Likewise, we did not have access to the appendices to the financial statements for the calculation of prudential ratios. This method, which consists of asking the institutions using a questionnaire if they comply with prudential standards, may be biased because this study cannot verify the authenticity of the responses given that the standards are quantitative. Practical implications The study findings advocate that improving the financial and social performance of MFIs requires improving the quality of external governance mechanisms. MFIs should then pay close attention to well-functioning external governance mechanisms. Social implications As MFIs are key social actors in a society, all mechanisms that contribute to their efficiency benefit society. Originality/value This study contributes to the corporate governance literature by showing that external governance mechanisms influence performance. These external mechanisms are complementary disciplinary measures to internal governance mechanisms and other tools.

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A Literature Review on Corporate Governance Mechanisms: Past, Present, and Future*

Cited by 18 publications

References 112 publications

SME corporate governance: a literature review of informal mechanisms for governance

SME corporate governance: a literature review of informal mechanisms for governance

Corporate governance in a weak legal environment: a systematic review focusing on Zimbabwe

The influence of external governance mechanisms on the performance of microfinance institutions in Togo

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