The Transformation of Corporate Governance in Emerging Markets: Reform, Convergence, and Diversity

This article focuses on the continuing tensions among the international movement for corporate governance reforms throughout emerging economies, the insistent capital market pressures for convergence of emerging economies’ corporate governance toward international standards, the vibrant cultural and institutional tendencies in emerging economies toward diversity in their corporate governance institutions and practices, and how these distinctive cultures and institutions of emerging economies represent a vital differentiator that might delineate much of the business development of these countries. A brief survey of the business models and corporate governance of the major BRICS economies demonstrates the considerable differentiation that exists among them, but even more so, with the exception of South Africa, the BRICS economies stand in contrast to the Anglo-American model of developed legal and regulatory structures and market-oriented corporate governance. This suggests a vitality in the diversity of governance and institutions, which can continue to deliver high rates of business growth and economic development.