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Effective Implementation of Corporate Governance: A Comparative Legal Analysis on Saudi Arabia and Australia Regulations

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  • Badar Mohammad Almeajel Alanazi

    (Shaqra University)

Abstract

This paper aims to develop a practical framework for effective corporate governance in emerging economies. Using qualitative data, we explain the need for the effective implementation of corporate governance through a comparative legal analysis of two countries: Australia and Saudi Arabia. Our analysis indicates that emerging countries in Asia and the Middle East, such as Saudi Arabia, lack proper accountability, management, and understanding of the contractual legal agreement that defines business relationships in corporate organizations. These observations are consistent with the agency theory of corporate governance, which theorizes that effective implementation of corporate governance requires effective management of organizational resources and avoidance of conflict of interest between and among managers and shareholders. Our study enhances our understanding of the ways countries could achieve the proper implementation of corporate governance in practical terms.

Suggested Citation

  • Badar Mohammad Almeajel Alanazi, 2020. "Effective Implementation of Corporate Governance: A Comparative Legal Analysis on Saudi Arabia and Australia Regulations," Proceedings of Business and Management Conferences 10112634, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:ibmpro:10112634
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    References listed on IDEAS

    as
    1. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    2. Shann Turnbull, 1997. "Corporate Governance: Its scope, concerns and theories," Corporate Governance: An International Review, Wiley Blackwell, vol. 5(4), pages 180-205, October.
    3. Cooper, Stuart M. & Owen, David L., 2007. "Corporate social reporting and stakeholder accountability: The missing link," Accounting, Organizations and Society, Elsevier, vol. 32(7-8), pages 649-667.
    4. Kunz, Alexis H. & Pfaff, Dieter, 2002. "Agency theory, performance evaluation, and the hypothetical construct of intrinsic motivation," Accounting, Organizations and Society, Elsevier, vol. 27(3), pages 275-295, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Corporate Governance; Effective Implementation; Law; Legal Analysis; Australia; Saudi Arabia;
    All these keywords.

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