Corporate Governance and Emerging Markets: Lessons from the Field

Jordan, Cally; Lubrano, Mike

doi:10.2139/ssrn.1184622

Cited by 7 publications

(3 citation statements)

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“…A high quality of corporate governance practices is important for a sustainable development of an economy (Barton et al, 2009;Jordan and Lubrano, 2007). But governments can only partly influence the quality of corporate governance of their home country firms by laws and regulations.…”

Section: Discussionmentioning

confidence: 99%

On the convergence of corporate governance practices in emerging markets

Lattemann

2014

Int Journal of Emerging Mkts

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Purpose -A high quality of corporate governance practices is important for a sustainable development of an economy. The purpose of this paper is to analyze the convergence and adaption of corporate governance practices in emerging markets. It shows how Brazil, Russia, India, and China (BRIC) firms apply international standards of good corporate governance and which factors affect the quality of corporate governance practices in BRIC countries. Design/methodology/approach -The authors use country and firm-level data from the BRIC countries and apply statistical models to identify the convergence of corporate governance practices. In all, 135 largest firms from Brazil, Russia, China, and India are analyzed. Findings -The study shows that firms from BRIC countries adapt to international best practices in corporate governance beyond the official requirements by national corporate governance codes. International institutions positively influence BRIC firms to apply international standards of good corporate governance. National corporate governance regimes (Anglo-American, Continental-European, and mixed systems) follow path dependencies and lead to differences in corporate governance practices among firms in different regimes.Research limitations/implications -Only a small number of 13 corporate governance best practices and a small number of countries have been selected and coded for this analysis. The presented results have to be interpreted with some caution. Originality/value -The study concludes with practical and specific insights for investors, managers, and policy makers on the importance of national government regimes and international institutions on corporate governance practices. Investors in BRIC need to better understand the contrasting governance environments in emerging markets, and their effects on corporate governance practices in each country. The findings suggest that corporate governance should be studied by considering multilevel antecedents on a country-, industry-, and firm-level.

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Section: Discussionmentioning

confidence: 99%

On the convergence of corporate governance practices in emerging markets

Lattemann

2014

Int Journal of Emerging Mkts

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“…What institutional investors think of these countries and whether they want to invest in these countries in short or long run deserves to be studied. Furthermore, quality of corporate governance practices is particularly important factor for sustainability of overall economic development (Jordan and Lubrano, 2008; Barton et al , 2009). However, there are very few studies on relationship between better corporate governance and macro factors such as poverty alleviation or reducing economic inequality conducted in different countries.…”

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

Corporate governance codes of Eurasian Economic Union countries: a comparative investigation

Nizaeva

Uyar

2017

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Purpose The purpose of this paper is to comparatively analyze the corporate governance codes of transition economies, particularly five Eurasian Economic Union (EAEU) members (i.e. Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia). Specifically, the convergence or divergence of these countries’ corporate governance codes among themselves as well as relative to the best practices of the UK Corporate Governance Code (UK Code) and the OECD Principles of Corporate Governance are investigated. Design/methodology/approach Initially, the existing literature on corporate governance with special focus on transition countries is reviewed. Afterwards, benchmarking the international best practices, based on main chapters and contents, the corporate governance codes of all countries in the sample are analyzed. Findings The paper finds that even though some principles of the corporate governance codes of the countries in the sample differ in some aspects, they do converge to some extent. However, high misalignments between the UK Code and the OECD Principles and the codes of selected countries in some aspects were found. Research limitations/implications The conclusion and implications of the study characterize the corporate governance of selected developing countries; thus, they might not be generalizable to other countries. Practical implications The codes of the countries in the sample should be revised, and more specifications regarding the stakeholder, board structure, its subcommittees, independence, diversity and transparency issues need to be addressed. Originality/value The paper comprehensively analyzes the contents of corporate governance codes of transition countries; from both practical and academic point of view, it was important gap that needed to be fulfilled.

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“…Alston (1999) further asserts that legal transplants in general are not successful. However, with reference to Latin America, Jordan and Lubrano (2008) note many examples where transplants have been ineffective, but by focusing on specific case examples in Mexico and Brazil, they arrive to the tentative conclusion that transplants attempted there may prove to be effective. Hence, it may be necessary to review and evaluate corporate governance in a wider context taking into consideration the realities of the institutions of the markets in which the firms are embedded (Aoki, 2001).…”

Section: Corporate Governancementioning

confidence: 99%

How relevant is corporate governance and corporate social responsibility in emerging markets?

Peters

Miller²,

Kusyk

2011

Corporate Governance: The International Journal of Business in Society

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Purpose -The principal aim of this research is to provide an in-depth analysis of existing practices of corporate governance in mature markets and to compare and contrast these approaches with CG and CSR practices in emerging markets, given the growing influence of EMs on the global economy.Design/methodology/approach -The methodology employed in the study is to survey the main theoretical approaches for understanding and CG in relation to mature markets and EMs.Findings -The paper makes a small but important contribution to theory building by modifying and expanding the conceptual framework put forward by Weimer, Pape, Gedjlovic, and Shapiro to make a distinction between systems of corporate governance and particularly the ''taxonomy of systems of corporate governance''. This is achieved by identifying an additional set of key variables specifically relevant to EMs as a group of countries. The main finding of the paper is that there is no comprehensive, ''one size fits all'' global corporate governance or CSR system, based on western codes and regulations that can be implemented in emerging markets.Originality/value -It is proposed that alternative corporate governance systems that reflect the institutional realities of emerging economy settings must be taken into account. The recognition of such alternative standards and codes in the way businesses are organized is original and valuable in practical as well as in social terms for both western investors and EMs. The paper is heretic in that it questions conventional wisdom, which views the OECD-prescribed best governance practices as applicable to EMs.

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Corporate Governance and Emerging Markets: Lessons from the Field

Cited by 7 publications

References 0 publications

On the convergence of corporate governance practices in emerging markets

On the convergence of corporate governance practices in emerging markets

Corporate governance codes of Eurasian Economic Union countries: a comparative investigation

How relevant is corporate governance and corporate social responsibility in emerging markets?

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