Internet and Corporate Governance

Abstract

In order to highlight the often-neglected significance of Internet in corporate governance, this paper offers a novel Internet Based Corporate Governance Rating, focusing on the disclosure of corporate governance on Internet and the use of Internet in corporate governance communication. The application of the Rating to the largest British and Polish corporations demonstrates that, while Polish companies generally lag behind the British firms, there are exceptions of Polish companies making a better use of Internet as a communication tool. Examples of good and bad practices are identified and a comparison of the IBCG Rating with conventional corporate governance ratings is presented, which underscores the distinctive character of the IBCG. Finally, the paper evaluates the limits of Internet use in corporate governance and discusses the implications of the results for the emergence of a global market for corporate governance as well as the processes of global financial integration.