Governance Issues for SMEs

Abstract

This paper draws on research into the corporate governance practices of small and medium enterprises (SMEs) listed on the Australian Securities Exchange. Interviews were conducted with the directors and/or company secretaries of 19 SMEs. The aim of the research was to explore not only SME corporate governance structures and processes but how SMEs had chosen to implement the Principles and the reasons for their choices. The paper addresses the issue of whether the ASX Corporate Governance Principles and Recommendations were appropriate for SMEs. It describes the SME responses to the requirements, how these differ from those of larger companies, and how these differences impact on small companies.

Corporate Governance Characteristics of Private SMEs’ Annual Report Submission Violations

“…Corporate governance in privately held firms includes many factors and variables that condition decision-making as to violate or not the disclosure of compulsory information, such as different organizational and/or institutional contexts (Uhlaner et al 2007). Clarke and Klettner (2009) and Uhlaner et al (2007) suggest that directors of small firms are more worried about survival than planning and control as corporate governance imperatives. In this line, Crossan et al (2015) emphasize that the lack of governance within small companies is a conditioning factor for business failure, while similar opinions are shared by Saxena and Jagota (2015) and Spiers (2017).…”

Corporate Governance, Risk and Crises in Small Companies: Shedding Light from inside the Boardroom Black Box

“…Taking up the theme of relevance, Lane et al (2006) argue convincingly that it would be inappropriate for small companies to adopt a corporate governance code designed for listed businesses that would incur a burdensome and bureaucratic overhead. Clarke and Klettner (2009) support this view and see most of the current corporate governance codes as being a case of overkill for small companies. Furthermore, Gibson, Vozikis and Weaver (2013) and Torres and Julien (2005) caution that there are consequences of ignoring the diff erences between small companies and listed businesses when considering matters of corporate governance due to the contextual variations and the economic ineffi ciencies that may be generated.…”

“…However, other researchers (Clarke & Klettner, 2009;Uhlaner, Wright, & Huse, 2007) state that directors of small companies view corporate governance, the context in which planning and control occurs, as being of limited importance or relevance when compared with the imperatives related to survival. Crossan et al (2015) emphasise that a lack of governance within small companies that is a contributory factor in business failure stating, many of these failures can be mitigated by the introduction of robust governance structures that would potential[ly] provide better planning and management structures (Crossan et al, 2015, p. 3).…”

Stakeholders E Sua Influência Na Governança Corporativa: Um Estudo De Caso Múltiplo Em Organizações Esportivas

“…Contudo, além da transparência, outros princípios de boas práticas também se fazem representar por suas respectivas importâncias, são eles: prestação de contas, equidade, ética e responsabilidade social (CHEN et al, 2007;MACHADO FILHO et al, 2007;RODRIGUEZ-DOMINGUEZ;GALLEGO-ALVAREZ;GARCIA-SANCHEZ, 2009;AZEVEDO et al, 2011). No entanto, enfatiza-se a necessidade de maior transparência por meio das boas práticas de governança corporativa nas organizações começou a se estender também para outros setores, tais como as empresas públicas (MOREIRA; RICCIO; SAKATA, 2007; FILHO; PICOLIN, 2008), as empresas de menor porte (CLARKE; KLETTNER, 2009;RIBEIRO, 2009) e as organizações esportivas (FERKINS; SHILBURY; MCDONALD, 2009;MCNAMEE;FLEMING, 2007).…”

“…No entanto, as boas práticas de governança corporativa começaram a se estender também para outros setores, tais como as empresas públicas (MOREIRA; RICCIO; SAKATA, 2007;PICOLIN, 2008), as empresas de menor porte (BRUNNINGE, NORDQVIST;WIKLUND, 2007;ABOR;BIEKPE, 2007;CLARKE;KLETTNER, 2009;RIBEIRO, 2009) e as organizações esportivas (FERKINS;MCDONALD, 2009;MCNAMEE;FLEMING, 2007).…”