Measuring the Quality of Corporate Governance: In Search of a Tailormade Approach?<sup>1</sup>

Berghe, L. A. A. Van den; Levrau, Abigail

doi:10.1177/030630700302800305

Cited by 22 publications

(14 citation statements)

References 10 publications

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“…Remarkably, the available rating systems use different methodologies and weighting in measuring the level of corporate governance and they take varying approaches to reach their final conclusions. However, a company's board structure and processes is one of the three minimum categories found in all corporate governance rating systems (for a comparison, see Van den Berghe and Levrau, 2003). Appendix 1 provides a detailed overview of the criteria used in assessing boards of directors as part of the overall corporate governance rating systems.…”

Section: Corporate Governance Rating Systemsmentioning

confidence: 99%

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Evaluating Boards of Directors: what constitutes a good corporate board?

Berghe

Levrau

2004

Corporate Governance

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This paper is an attempt to identify what constitutes a good board of directors, and this is based on a comparison between academic literature, corporate governance rating systems and our field research into board practices. We observed that "traditional" academic research focused on a limited number of quantifiable board characteristics, while practitioners attach greater importance to "soft" elements, which are nearly absent in the literature and in the governance ratings. These findings highlight the need for a better understanding of all elements that determine board effectiveness. Furthermore, our results identify three areas of improvement for boards of directors. Copyright Blackwell Publishing Ltd. 2004.

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Section: Corporate Governance Rating Systemsmentioning

confidence: 99%

“…Most of the rating systems rely on the internationally recognised corporate governance principles and codes (e.g. OECD, ICGN, World Bank), completed with national recommendations (Van den Berghe and Levrau, 2003). In particular, the latter may differ from one country to another.…”

Section: Corporate Governance Rating Systemsmentioning

confidence: 99%

Evaluating Boards of Directors: what constitutes a good corporate board?

Berghe

Levrau

2004

Corporate Governance

Self Cite

261

147

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“…Public domain documents such as these, although not necessarily objective, are less likely to contain unrepresentative data because they are subject to scrutiny by analysts, shareholders, creditors, regulators and the general public. On the other hand, our methodology may not necessarily be the most efficient way of acquiring data on actual governance arrangements of firms. Assigning different weightings to different governance dimensions (as in Tsipouri and Xanthakis) also assumes subjective judgement (Van den Berghe and Levrau, 2003). However, the existing governance literature does not provide guidance on specific variables and dimensions quantifying governance quality (Balling et al ., 2006).…”

Section: Introductionmentioning

confidence: 99%

“…Assigning different weightings to different governance dimensions (as in Tsipouri and Xanthakis) also assumes subjective judgement (Van den Berghe and Levrau, 2003). However, the existing governance literature does not provide guidance on specific variables and dimensions quantifying governance quality (Balling et al ., 2006).…”

Section: Introductionmentioning

confidence: 99%

Benchmarking Greek Corporate Governance against Different Standards

Florou¹,

Galarniotis²

2007

Corporate Governance

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The rapidly increasing worldwide focus on corporate governance has resulted in a proliferation of rating systems that proxy for governance quality. This study develops a governance rating for Greek listed companies by benchmarking their governance structures against three levels: (a) the minimum requirements under Greek regulation (lower level); (b) the incremental recommendations of the Greek code (middle level); and (c) the additional international best practices, prescribed by the UK Combined Code (higher level). Using available data on 274 out of 340 Greek listed companies in 2003 and based on information collected primarily from annual reports, we find that the average governance rating at the lower level is 65.5 per cent; this scoring reduces significantly as we move to the middle and higher level. The average governance rating is 44 per cent. Second, governance scores increase with firm size. Although there may be good reasons explaining these patterns, we find that Greek companies do not provide explanations, i.e. do not practice the "comply or explain" recommendation. Third, our middle level aggregate governance rating is much lower than that reported by prior research that uses a different data gathering and weighting approach. This divergence has important methodological implications. Finally, we document a relatively high lack of transparency in relation to Greek governance practices. This is a sign of "bad governance". Copyright (c) 2007 The Authors; Journal compilation (c) 2007 Blackwell Publishing Ltd.

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“…Although there are a myriad of indicators of good governance, governance ratings neglect key board process issues and leadership integrity. Our previous research already highlighted the shortcomings of the external governance ratings (Van den Berghe and Levrau, 2003), but also Richard Leblanc (in Conger, 2009) as well as Jeffrey are very critical of this methodology. They state that these governance scoring methodologies, such as the one used by ISS, appear to be incomplete at best, and deeply flawed at worst.…”

Section: Board Effectiveness Goes Beyond 'Visible' Factors Put Forwarmentioning

confidence: 99%

How to Make Boards Work

Kakabadse¹,

Berghe²

2013

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Please respect intellectual property rightsThis material is copyright and its use is restricted by our standard site license terms and conditions (see http://www.palgraveconnect.com/pc/connect/info/terms_conditions.html). If you plan to copy, distribute or share in any format including, for the avoidance of doubt, posting on websites, you need the express prior permission of Palgrave Macmillan. To request permission please contact rights@palgrave.com. Ho w t o Ma k e B o a r d s Wo r kA n I n t e r n a t i o n a l Ov e r v i e w A n d r e w K a k a b a d s e L u t g a r t V a n d e n B e r g h e a n d

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Measuring the Quality of Corporate Governance: In Search of a Tailormade Approach?¹

Cited by 22 publications

References 10 publications

Evaluating Boards of Directors: what constitutes a good corporate board?

Evaluating Boards of Directors: what constitutes a good corporate board?

Benchmarking Greek Corporate Governance against Different Standards

How to Make Boards Work

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Measuring the Quality of Corporate Governance: In Search of a Tailormade Approach?1

Cited by 22 publications

References 10 publications

Evaluating Boards of Directors: what constitutes a good corporate board?

Evaluating Boards of Directors: what constitutes a good corporate board?

Benchmarking Greek Corporate Governance against Different Standards

How to Make Boards Work

Contact Info

Product

Resources

About

Measuring the Quality of Corporate Governance: In Search of a Tailormade Approach?¹