Advanced Search
MyIDEAS: Login

Tightening corporate governance

Contents:

Author Info

  • Windsor, Duane
Registered author(s):

    Abstract

    Tightening corporate governance in multinational corporations (MNCs) is difficult because of confusion over the proper conception of governance, competing pressures on and complex attributes of MNCs, and the fact that many prescriptions are untested. This article documents multiple pressures on MNCs and recommends how management should cope with those pressures. Tightening governance directly concerns pressures from investors, exchanges, and regulators for adoption of recommended standards and practices to increase financial transparency and fiduciary accountability. MNCs also face pressures for corporate social responsibility (CSR). Short-term financial performance and longer-term financial viability may conflict with one another and also with the social and environmental components of triple bottom line performance. MNCs are organizationally complex to manage. Geographical diversity peculiarly means great variance in legal systems, other non-market institutions, and MNC governance and CSR approaches across country units. International standards for governance and reporting are not well established; and enforcement occurs largely by stock exchanges and national jurisdictions.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/pii/S1075425309000489
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 15 (2009)
    Issue (Month): 3 (September)
    Pages: 306-316

    as in new window
    Handle: RePEc:eee:intman:v:15:y:2009:i:3:p:306-316

    Contact details of provider:
    Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description

    Order Information:
    Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/bibliographic
    Web: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/bibliographic

    Related research

    Keywords: Corporate governance Cross-national variation Geographical diversity Multinational corporation Transparency;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Michael Pollitt & Ian Jones, 2003. "Understanding How Issues in Corporate Governance Develop: Cadbury Report to Higgs Review," ESRC Centre for Business Research - Working Papers wp277, ESRC Centre for Business Research.
    2. Alan M Rugman & Alain Verbeke, 2003. "Extending the theory of the multinational enterprise: internalization and strategic management perspectives," Journal of International Business Studies, Palgrave Macmillan, vol. 34(2), pages 125-137, March.
    3. Stephen G. Sapp, 2008. "The Impact of Corporate Governance on Executive Compensation," European Financial Management, European Financial Management Association, vol. 14(4), pages 710-746.
    4. Chung-Hua Shen & Hsiang-Lin Chih, 2007. "Earnings Management and Corporate Governance in Asia's Emerging Markets," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(5), pages 999-1021, 09.
    5. Paul Gompers & Joy Ishii & Andrew Metrick, 2003. "Corporate Governance And Equity Prices," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 107-155, February.
    6. Tarun Khanna & Joe Kogan & Krishna Palepu, 2006. "Globalization and Similarities in Corporate Governance: A Cross-Country Analysis," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 69-90, February.
    7. Joseph D. Piotroski & Suraj Srinivasan, 2008. "Regulation and Bonding: The Sarbanes-Oxley Act and the Flow of International Listings," Journal of Accounting Research, Wiley Blackwell, vol. 46(2), pages 383-425, 05.
    8. Rafael La Porta & Florencio Lopez-deSilanes & Andrei Shleifer & Robert W. Vishny, 1999. "Investor Protection and Corporate Valuation," NBER Working Papers 7403, National Bureau of Economic Research, Inc.
    9. Xavier Gabaix & Augustin Landier, 2008. "Why Has CEO Pay Increased So Much?," The Quarterly Journal of Economics, MIT Press, vol. 123(1), pages 49-100, 02.
    10. Ciaran Driver & Grahame Thompson, 2002. "Corporate Governance and Democracy: The Stakeholder Debate Revisited," Journal of Management and Governance, Springer, vol. 6(2), pages 111-130, May.
    11. John Elkington, 2006. "Governance for Sustainability," Corporate Governance: An International Review, Wiley Blackwell, vol. 14(6), pages 522-529, November.
    12. Michael A Witt & Gordon Redding, 2009. "Culture, meaning, and institutions: Executive rationale in Germany and Japan," Journal of International Business Studies, Palgrave Macmillan, vol. 40(5), pages 859-885, June.
    13. Caspar Rose, 2005. "The Composition of Semi-Two-Tier Corporate Boards and Firm Performance," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(5), pages 691-701, 09.
    14. Andrei Shleifer & Robert W. Vishny, 1996. "A Survey of Corporate Governance," NBER Working Papers 5554, National Bureau of Economic Research, Inc.
    15. Holthausen, Robert W., 2003. "Testing the relative power of accounting standards versus incentives and other institutional features to influence the outcome of financial reporting in an international setting," Journal of Accounting and Economics, Elsevier, vol. 36(1-3), pages 271-283, December.
    16. Jungmann Carsten, 2006. "The Effectiveness of Corporate Governance in One-Tier and Two-Tier Board Systems – Evidence from the UK and Germany –," European Company and Financial Law Review, De Gruyter, vol. 3(4), pages 426-474, December.
    17. David Finegold & George S. Benson & David Hecht, 2007. "Corporate Boards and Company Performance: review of research in light of recent reforms," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(5), pages 865-878, 09.
    18. Ivan Brick & N. Chidambaran, 2008. "Board monitoring, firm risk, and external regulation," Journal of Regulatory Economics, Springer, vol. 33(1), pages 87-116, February.
    19. Masaru Yoshimori, 2005. "Does Corporate Governance Matter? Why the Corporate Performance of Toyota and Canon is Superior to GM and Xerox," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(3), pages 447-457, 05.
    20. Alpay, Guven & Bodur, Muzaffer & Ener, Hakan & Talug, Cem, 2005. "Comparing board-level governance at MNEs and local firms: lessons from Turkey," Journal of International Management, Elsevier, vol. 11(1), pages 67-86, March.
    21. Mihir A. Desai & Alberto Moel, 2008. "Czech Mate: Expropriation and Investor Protection in a Converging World," Review of Finance, European Finance Association, vol. 12(1), pages 221-251.
    22. Simon Deakin & Suzanne J. Konzelmann, 2004. "Learning from Enron," Corporate Governance: An International Review, Wiley Blackwell, vol. 12(2), pages 134-142, 04.
    23. Litvak, Kate, 2007. "The effect of the Sarbanes-Oxley act on non-US companies cross-listed in the US," Journal of Corporate Finance, Elsevier, vol. 13(2-3), pages 195-228, June.
    24. Alan M Rugman & Alain Verbeke, 2004. "A perspective on regional and global strategies of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan, vol. 35(1), pages 3-18, January.
    25. John Buchanan & Simon Deakin, 2007. "Japan's Paradoxical Response to the new 'Global Standard' in Corporate Governance," ESRC Centre for Business Research - Working Papers wp351, ESRC Centre for Business Research.
    26. Jere Francis & Inder Khurana & Xiumin Martin & Raynolde Pereira, 2008. "The Role of Firm-Specific Incentives and Country Factors in Explaining Voluntary IAS Adoptions: Evidence from Private Firms," European Accounting Review, Taylor & Francis Journals, vol. 17(2), pages 331-360.
    27. Anlin Chen & Lanfeng Kao & Meilan Tsao & Chinshun Wu, 2007. "Building a Corporate Governance Index from the Perspectives of Ownership and Leadership for Firms in Taiwan," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(2), pages 251-261, 03.
    28. Lucian Bebchuk & Alma Cohen & Allen Ferrell, 2009. "What Matters in Corporate Governance?," Review of Financial Studies, Society for Financial Studies, vol. 22(2), pages 783-827, February.
    29. Bernard S. Black & Hasung Jang & Woochan Kim, 2006. "Does Corporate Governance Predict Firms' Market Values? Evidence from Korea," Journal of Law, Economics and Organization, Oxford University Press, vol. 22(2), pages 366-413, October.
    30. Priya P. Lele & Mathias M. Siems, 2007. "Diversity in Shareholder Protection in Common Law Countries," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 5(1), pages 3-9, 05.
    31. Davies Paul & Rickford Jonathan, 2008. "An Introduction to the New UK Companies Act," European Company and Financial Law Review, De Gruyter, vol. 5(1), pages 48-71, March.
    32. Lena Tsipouri & Manolis Xanthakis, 2004. "Can Corporate Governance be Rated? Ideas based on the Greek experience," Corporate Governance: An International Review, Wiley Blackwell, vol. 12(1), pages 16-28, 01.
    33. Bennett Stewart, 2006. "The "Real" Reasons Enron Failed," Journal of Applied Corporate Finance, Morgan Stanley, vol. 18(2), pages 116-119.
    34. Tylecote, Andrew & Ramirez, Paulina, 2006. "Corporate governance and innovation: The UK compared with the US and 'insider' economies," Research Policy, Elsevier, vol. 35(1), pages 160-180, February.
    35. Elisabeth Dedman, 2000. "An Investigation into the Determinants of UK Board Structure Before and After Cadbury," Corporate Governance: An International Review, Wiley Blackwell, vol. 8(2), pages 133-153, 04.
    36. Aman, Hiroyuki & Nguyen, Pascal, 2008. "Do stock prices reflect the corporate governance quality of Japanese firms?," Journal of the Japanese and International Economies, Elsevier, vol. 22(4), pages 647-662, December.
    37. Simon Deakin & Richard Hobbs, 2007. "False Dawn for CSR? Shifts in regulatory policy and the response of the corporate and financial sectors in Britain," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(1), pages 68-76, 01.
    38. Marianne Bertrand & Sendhil Mullainathan, 2001. "Are Ceos Rewarded For Luck? The Ones Without Principals Are," The Quarterly Journal of Economics, MIT Press, vol. 116(3), pages 901-932, August.
    39. Steven Toms & Mike Wright, 2005. "Divergence and Convergence within Anglo-American Corporate Governance Systems: Evidence from the US and UK, 1950-2000," Business History, Taylor & Francis Journals, vol. 47(2), pages 267-295.
    40. Pik Kun Liew, 2007. "Corporate Governance Reforms in Malaysia: the key leading players' perspectives," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(5), pages 724-740, 09.
    41. Geoffrey C. Kiel & Kevin Hendry & Gavin J. Nicholson, 2006. "Corporate Governance Options for the Local Subsidiaries of Multinational Enterprises," Corporate Governance: An International Review, Wiley Blackwell, vol. 14(6), pages 568-576, November.
    42. Aguilera, Ruth V. & Jackson, Gregory, 2002. "The Cross-National Diversity of Corporate Governance: Dimensions and Determinants," Working Papers 02-0108, University of Illinois at Urbana-Champaign, College of Business.
    43. Ghezzi Federico & Malberti Corrado, 2008. "The Two-Tier Model and the One-Tier Model of Corporate Governance in the Italian Reform of Corporate Law," European Company and Financial Law Review, De Gruyter, vol. 5(1), pages 1-47, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Lutz Preuss, 2012. "Responsibility in Paradise? The Adoption of CSR Tools by Companies Domiciled in Tax Havens," Journal of Business Ethics, Springer, vol. 110(1), pages 1-14, September.
    2. Kearney, Colm, 2012. "Emerging markets research: Trends, issues and future directions," Emerging Markets Review, Elsevier, vol. 13(2), pages 159-183.
    3. Huseynov, Fariz & Klamm, Bonnie K., 2012. "Tax avoidance, tax management and corporate social responsibility," Journal of Corporate Finance, Elsevier, vol. 18(4), pages 804-827.
    4. Driver, Ciaran & Guedes, Maria João Coelho, 2012. "Research and development, cash flow, agency and governance: UK large companies," Research Policy, Elsevier, vol. 41(9), pages 1565-1577.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:15:y:2009:i:3:p:306-316. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.