Overview Of Corporate Governance Practices Research Articles

An overview of corporate governance practices: An institutional perspective in an emerging market

This study provides a comprehensive view of the current practice of corporate governance (CG) in the emerging market, with a specific focus on Jordan. By using archival data, namely the academic literature, reports published by the main institutions, and financial reports published by listed companies, this study addresses the roles explored of main institutional forces, firms’ characteristics, financial markets, and the Jordanian economic environment in reinforcing the current practices of CG in Jordan. Although Jordan aims for institutional development to reinforce practices toward consistency with international CG best practices, the results of this study show that there is a weak institutional environment, with a seeming lack of some external control instruments. The findings also indicate that unpredictable legal enforcement causes poor compliance by Jordanian companies. Therefore, current CG practices in Jordan are neither adequate nor comprehensive (Mansour et al., 2023). Therefore, the weakness of CG may lead to further financial crises at the company level in Jordan. This study represents the first attempt to explore whether institutional forces are essential to strengthen CG practices in developing nations, and the results of this article can serve as a prototype for other developing economies.

An Overview of Corporate Governance Practices of Selected Islamic Banks

Complying with Corporate Governance (CG) standards is not mandatory but with collapse of many financial institutions, compliance with high standards of CG in banking operation has become a necessity. This is due to the fact that many banks and companies worldwide collapsed as a result of poor corporate governance practices such as Bank of Credit and Commerce International (BCCI) 1991, Barings Bank 1995, Lehman Brothers 2008, Enron 2001, WorldCom 2001, etc. Therefore, the objective of this paper is to examine and ascertain whether present level of CG standards practiced by Islamic banks is adequate to prevent or safeguard the banks from collapsing. The approach of the study is to evaluate the effectiveness of board and the various board committees utilizing data published in financial statement of the selected banks. The methodology used in this paper is analytical descriptive to reach accurate results and as more appropriate approach with this research. The study finds out that the selected banks comply with CG standards adopted; however such compliance does not mean that the board, the board committees will be constantly reliable. Therefore, instilling the Islamic values such as the concepts of i ḥ sân, honesty, and accountability is paramount to prevent CG failures and protect/safeguard the banks from collapsing.

Rethinking capital markets reform: a reassessment of Olson problem and regulatory dualism in the German capital markets from a varieties of capitalism perspective

Since its proposition by Peter A. Hall and David Soskice the Varieties of Capitalism (VoC) approach has been particularly important to explain the relationship between economic agents and sets of institutional arrangements that, even in regulatory scenarios that Law and Finance’s school would consider “less than optimal”, are able to generate sustainable economic growth. In this context the VoC approach has been consistently challenging the traditional “one fits all” approach towards capital markets reform usually endorsed by institutions such as the World Bank and the International Monetary Fund, as well as by many scholars and capital markets regulators associated with La Porta’s Law and Finance School. As any theoretical framework, however, the VoC approach also faces its own challenges and still lacks the scientific maturity achieved by the Law and Finance School. Consequently a conciliation between the relational view of the firm proposed by the VoC approach and the overview of corporate governance practices throughout the world presented by the Law and Finance School would be instrumental to construe a more clear understanding of the competitive advantages generated by certain sets of institutions and, at the same time, more accurately assess impacts of reforms that, even if implemented with the legitimate goal of promoting firms’ transparency and higher corporate governance standards, may counter-intuitively generate unprecedented corporate and capital markets crisis. By analyzing two concepts proposed by Ronald J. Gilson, Henry Hansmann and Mariana Pargendler that have an apparent fundamental link to La Porta’s school of Law and Finance (i.e. Olson Problem and Regulatory Dualism) through a varieties of capitalism approach, this study aims at rethinking the traditional “one fits all” approach towards capital markets reform and taking a further step in the direction of conciliating the VoC approach with La Porta’s Law and Finance School. The analysis proposed in this article considers corporate and capital markets reforms in Germany between 1950 and 1997 (the year of creation of the Neuer Market) and also takes into consideration underlying economic factors of the German market economy, which ultimately contributed to the collapse of the Neuer Markt on late 2001.

Corporate governance in asia: a comparative study

This study examines the overview of Corporate Governance practices in Asian countries. However the corporate governance is a mandatory requirement in today‘scorporate world by every stake holders groups. Moreover, corporate governance has brought weakness to the attention of general public, especially in Asian countries.This paper begins with a corporate governance needs and overview of corporate governance practices as approved by the OECD and World Bank. Then proceeds to examine how these practices are being useful for Asian countries.

Corporate governance in Europe: current status and future trends

PurposeTo provide a comprehensive overview of corporate governance practices in the top listed companies in ten European countries.Design/methodology/approachPresents comparative empirical research based on public data from public companies. This survey has been published biennially ever since 1999. We selected the top companies by market capitalization from national indexes (e.g. CAC 40, DAX 30). Each of the 294 companies was rated individually in order to produce a country average, from which we generate a European average. The weighted rating criteria as the same as in our 3 previous surveys, and take into account the working and composition of the board, and disclosure levels.FindingsThe study shows significant progress and more convergence in corporate governance practices. The best‐performing countries in the three previous surveys – the UK, the Netherlands and France – are still at the top, and there is a reduced variance within countries. Boards also continue to work harder, partly explaining the rise in Directors' compensation. Committees are almost universal, although their composition could be improved. Boards are gradually becoming more independent but remain more domestic than the companies themselves. International directors (16 percent) and women directors (now 7 percent) are still not enough in evidence. More progress in corporate governance practices can be expected in the future as we can expect an even greater convergence of board practices between and within European countries.Originality/valueThis study is unique as it provides a reliable comparative picture of board practices across ten European countries and ever since 1999, with the comments of local experts of corporate governance in each market.