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Responses to corporate governance code: evidence from a longitudinal study

Author

Listed:
  • Maria Aluchna

    (Department of Management Theory, Warsaw School of Economics)

  • Tomasz Kuszewski

    (University of Economics and Human Sciences in Warsaw)

Abstract

Drawing upon neo-institutional theory as the perspective for research on corporate governance, we present the results of empirical studies on compliance with best practice codes. We view the declarations of conformity as the organizational response to institutional pressure and address questions on (1) how companies respond to recommendations on board best practice and (2) how these reactions evolve over time. The study employs the mixed method approach and is based on a time-series sample of conformity declarations published by 126 companies listed on the Warsaw Stock Exchange during the period 2006–2019. Descriptive statistics indicate an increase in the number of complying companies, an improvement in compliance quality and the growing length of conformity declarations. In the content analysis we identify two main reaction strategies (acceptance and rejection) with seven selected responses. We discuss the contribution to the existing literature on reactions to new practices in corporate governance.

Suggested Citation

  • Maria Aluchna & Tomasz Kuszewski, 2022. "Responses to corporate governance code: evidence from a longitudinal study," Review of Managerial Science, Springer, vol. 16(6), pages 1945-1978, August.
    • Handle: RePEc:spr:rvmgts:v:16:y:2022:i:6:d:10.1007_s11846-021-00496-3
    DOI: 10.1007/s11846-021-00496-3
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    More about this item

    Keywords

    Corporate governance; Corporate governance code; Best practice; Compliance; Neo-institutional theory;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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