Impact of Globalisation on Corporate Governance in Developing Economies: A Theoretical Approach

Abstract

The key elements in globalization are the interconnection of sovereign nations through trade and capital flows, harmonization of the economic rules, creation of structural support and facilitate interconnection and the development of a global market, which allow flow of foreign investment, both direct and portfolio. To assure these corporate financiers that their investment would be secured, there is need for good corporate governance, which involves a network of relationships between corporate managers, directors and the stakeholders. The objective of this paper is to find out how globalization has been able to influence corporate governance practices in developing economies. Findings indicate that corporate governance in most developing economies has been influenced by globalization, which has provided an international benchmark for policy makers on issue of corporate governance. Based on the findings, recommendations were made on how to improve corporate governance in developing countries, especially Nigeria.