The Regulatory Conundrum: Achieving Corporate Governance Reforms in Developing Countries

Siddiqui, Javed; Ferdous, Chowdhury Saima

doi:10.1007/978-3-642-44955-0_18

Cited by 4 publications

(6 citation statements)

References 38 publications

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“…The reforms to CG regulations in Bangladesh were based chiefly on Anglo‐American experiences (Belal, Spence, Carter, & Zhu, 2017; Siddiqui & Ferdous, 2014; Sobhan, 2016; Sobhan & Werner, 2003; Uddin & Choudhury, 2008). In 2002, a private think‐tank, the Bangladesh Enterprise Institute (BEI), conducted research on the state of CG in Bangladesh and outlined a prescription for standard CG practices (Sobhan & Werner, 2003).…”

Section: Cg Reforms In Bangladeshmentioning

confidence: 99%

“…Therefore, it proposed that the Bangladesh Securities and Exchange Commission (BSEC) should adopt the code on a “comply or explain” basis (BEI, 2004). To institutionalise this authoritative code (Siddiqui & Ferdous, 2014), BSEC issued a Notification of Corporate Governance Guidelines (NCGG) on February 20, 2006, which followed a voluntary or soft approach with “comply or explain” provisions.…”

Section: Cg Reforms In Bangladeshmentioning

confidence: 99%

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Corporate governance reform and overstatement of compliance: Illustrations from an emerging economy

2020

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This paper examines the effect of corporate governance (CG) reform on the window dressing of compliance in the context of an emerging economy, Bangladesh. In particular, this study investigates the true level of compliance concerning the three internal governance mechanisms, such as board independence, CEO duality and formation of audit committee before and after the reform enacts. By using content analysis of 194 non-financial listed companies between 2007 and 2017, this study observes the extent of overstatements in compliance statements along with the nature of firms that are involved in it. After the regulatory shift in 2012, requiring more independent directors into the board and external certification of compliance statements, it was found that the extent of window dressing in compliance statements declined considerably over time. Moreover, government firms are found to make more proportionate overstatements compared to family and others (non-family and foreign companies). counterparts. The fall in window dressing indicates that the companies' fabricating efforts in CG compliance are challenged by the regulatory change in a formal legal environment.

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Section: Cg Reforms In Bangladeshmentioning

confidence: 99%

Section: Cg Reforms In Bangladeshmentioning

confidence: 99%

Corporate governance reform and overstatement of compliance: Illustrations from an emerging economy

2020

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“…The BSEC guideline 2012 & 2018 stated that at least one board member should be female; and this is mandatory for all listed companies. A study by Siddiqui and Ferdous (2016) found that family business is in lead position in having women, and they stated the reason behind this is that the company act 1994 added the provision of including family members up to 55% of the ownership of companies. Furthermore, the bank company act (1991) of Bangladesh said that, "At the same time, no more than 4 [four] more members from any single family will be held in the position of the director of any banking company".…”

Section: The Status Women On Board Of Different Countriesmentioning

confidence: 99%

Analysis of the Status of Women Directors: A Study on the Listed Financial Institutions of Bangladesh

Ferdous¹,

Rahman²

2019

IBR

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This paper investigates the status of women directors of Bangladesh using all the listed financial institutions of this country. Particularly, the paper considers three issues: the number of women working as directors, their qualification; and their recruitment process. Using a mixed method, the overall findings of the study reveals a very dissatisfactory status of the women in the top position in the Financial Institutions of Bangladesh. It also indicated that, though the number of qualified women is increasing but the rate of growth is slow like many other countries. The patriarchal society and the socio-cultural factors are still dominating the recruitment process of women as a director. Though the overall findings show a sluggish growth of the status of women at the top position, the findings of this study indicate the gap in understanding of the policy makers and also among women, which will help in developing effective policies for ensuring gender diversity at the board level.

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“…Moreover, increased global market integration is exerting pressure on countries to adopt a unique governance style (Cuomo et al 2016). The regulatory authority of Bangladesh embraced the westernised model of corporate governance on the basis of legitimacy for the IFOs (Siddiqui 2010) and thus institutionalizing the authoritative rules (Siddiqui and Ferdous 2014). Two significant causes for Bangladesh's 'wholesale adoption' of the Anglo-American CG paradigm were identified in studies (such as Reed 2002;Siddiqui 2010;Siddiqui and Ferdous 2014).…”

Section: Introductionmentioning

confidence: 99%

“…The regulatory authority of Bangladesh embraced the westernised model of corporate governance on the basis of legitimacy for the IFOs (Siddiqui 2010) and thus institutionalizing the authoritative rules (Siddiqui and Ferdous 2014). Two significant causes for Bangladesh's 'wholesale adoption' of the Anglo-American CG paradigm were identified in studies (such as Reed 2002;Siddiqui 2010;Siddiqui and Ferdous 2014). First, there are the past financial disasters caused by a failure to properly implement national economic and industrial policy.…”

Section: Introductionmentioning

confidence: 99%

Reforms of Corporate Governance Codes in Bangladesh: Developments and Future Directions

Islam

Rahman

Saha

2022

JRFM

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This research investigates corporate governance (CG) norms in Bangladesh, a developing nation. This study assesses the codes’ key aspects and how they have evolved since the first code was released in 2006. This analysis shows that BSEC changed its recommendations from voluntary to mandatory in the subsequent revisions in 2012 and 2018. The modified versions increased board independence compared to the original code, although it is still lower than in some other emerging nations. Recent changes to the rules include conditions on the nomination and remuneration committees, along with some other amendments. However, critical governance components, such as choosing an independent board member as chair, improving board independence, and assuring gender diversity, could be implemented in future code development. It is believed that investors would be more interested in Bangladesh’s capital market if the policymakers could make the proposed modifications in accordance with the distinctive institutional features of an emerging economy.

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The Regulatory Conundrum: Achieving Corporate Governance Reforms in Developing Countries

Cited by 4 publications

References 38 publications

Corporate governance reform and overstatement of compliance: Illustrations from an emerging economy

Corporate governance reform and overstatement of compliance: Illustrations from an emerging economy

Analysis of the Status of Women Directors: A Study on the Listed Financial Institutions of Bangladesh

Reforms of Corporate Governance Codes in Bangladesh: Developments and Future Directions

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