Development of corporate governance codes in the GCC: an overview

Abstract

Purpose – This paper aims to discuss and compare the corporate governance codes in Gulf Cooperation Council (GCC) countries. Design/methodology/approach – The development of corporate governance codes in the GCC is considered using an analytical approach. Findings – Efforts and initiatives are underway in the GCC towards improving the corporate governance environment and coping with international developments. Although most GCC codes are comprehensive compared to those of other Middle East North Africa (MENA) countries, and are similar to international codes, as with almost all countries in the region, there is room for development. Updated codes that address the unique nature of these countries could enhance corporate governance. Research limitations/implications – This comparison between GCC corporate governance codes provides opportunities to empirically compare the corporate governance status in these countries through indices or checklists based on the current comparison. Practical implications – The research facilitates future evaluations of corporate governance in Gulf countries. In other words, different stakeholders, including investors and analysts, can utilise this paper during decision-making. Moreover, comparing GCC codes to others in the MENA region would help to assess the GCC’s position in the region regarding these codes, and also alert firms to corporate governance reforms occurring in the region. Originality/value – The paper analyses the corporate governance codes issued in the GCC, which represents a group of countries with similar characteristics that are thus studied separately from other MENA countries, and compares the corporate governance codes issued for non-financial listed companies.

Impact of Fraud Preventive Measures on Good Corporate Governance

“…Limited research is conducted in the field of corporate governance in Oman and available studies are related towards the identification of corporate governance relationship with financial reporting time lines, accounting standards and financial performance. Few of the studies are also conducted for the comparison of codes between Gulf Corporation Council (GCC) countries and probable challenges faced regarding implementation of new codes of corporate governance (Shehata, 2015;Al-Shammari et al, 2008;Baydoun et al, 2013;Baatwah et al, 2015;Sanyal & Hisam, 2018;Ellen, 2002).…”

“…In terms of Omani market, very limited studies are available which can related to the area of corporate governance. Studies and researches which are conducted for corporate governance in Omani market are related to difference between new and old codes, impact of new codes on financial market and reporting time lines (Sanyal & Hisam, 2018;Al-Shammari, Brown & Tarca 2008;Baydoun, Maguire, Ryan, &Willett, 2013;Shehata, 2015;Baatwah, Salleh & Ahmad, 2015;Ellen, 2002). However, researcher was not able to find any study related to the Omani market which can define that how corporate governance can be considered as good and antifraud activities and controls can be considered as part of governance management system.…”

Listening Skills: Accountancy Educators in Retreat?

“…However, in developing countries, the problems of RPTs are expected to be significantly larger, as protection of minority rights is limited due to controlling shareholders being family members or the state, coupled with weak enforcement of regulations (Williams & Taylor, 2013). In the MENA region, corporate governance systems in companies have been described as having high power distance (Aghimien, 2016) and limited transparency and disclosure (Nadal, 2013), in addition to facing several structural issues including weaknesses in development of stock markets, legal controls, and investor protection, in addition to economic uncertainty, family control of companies, and high ownership concentration (Shehata, 2015). In their report, OECD-UASA (2014) mentioned the wide use of RPTs in the MENA region, particularly highlighting the high potential of tunnelling by using RPTs between a company and its controlling shareholder.…”

Governance codes in the developing and emerging countries: Do they look for the international role model?

“…Economics and Sociology,12(3), 251-272. doi:10.14254/2071-789X.2019/12-3 & Adegbite, 2012, Shehata, 2015). The growing numbers of codes across the world have intensified efforts to answer the long-lasting question of whether increasing globalisation pushes towards the convergence of local governance practices into the global model of best practice.…”