Download or read book A Primer on Corporate Governance written by Jean Chen and published by Business Expert Press. This book was released on 2015-06-30 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since its opening up and economic reforms in 1979, China has undergone tremendous economic growth and social development, with a ten percent real gross domestic product growth per year on average through 2013. In spite of such an accomplishment, the current economic growth model in China, which is mainly triggered by the export-led policy and the huge government investment, has been challenged by potential external and internal risks, which do not support sustainable economic growth in the long run. In this book, the author comprehensively reviews the corporate governance practices in China, identifying the major problems within such practices. It is contended that these problems have been seen as the major challenges facing the Chinese economy, and further, that the current weakness of corporate governance practices in China can be ascribed, to a great extent, to the incompleteness and weakness of law enforcement.

Download or read book Internal and External Governance Mechanisms written by Charlie Weir and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyses the relationship between internal and external corporate governance mechanisms and the performance of UK companies within the context of the Cadbury Committee's Code of Best Practice. The results show, first, that the market for corporate control is an effective governance mechanism that may be regarded as a substitute for the other mechanisms. Second, there is a weak relationship between the internal governance mechanisms and performance. Third, there is also little evidence that with firms in the top and bottom performance deciles have different internal governance characteristics. The results therefore raise questions about the efficacy of imposing prescriptive internal governance mechanisms on companies, particularly given that the market for corporate control has been shown to be an effective means of reducing agency costs.

Download or read book Corporate Governance written by E. Banks and published by Springer. This book was released on 2003-11-25 with total page 510 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate Governance is a text which considers the problems surrounding governance and proposes solutions to help restore investor confidence in the corporate world. The book is intended for board members, corporate executives, regulators, auditors, creditors and analysts seeking a concise analysis of the governance issues facing financial and non-financial corporations round the world. The book is fully international in context and includes real-life examples and cases to emphasize the practical nature of governance problems and solutions.

Download or read book Internal and External Aspects of Corporate Governance written by Ahmed Naciri and published by Routledge. This book was released on 2009-10-16 with total page 359 pages. Available in PDF, EPUB and Kindle. Book excerpt: An effective system of corporate governance has both internal and external aspects that have to be sufficiently responsive if governance is to succeed. In this book, Ahmed Naciri examines these two core aspects or the latest buzzword in business and management theory. Internal aspects include ownership structure, the board of directors and committees, internal control, risk management, transparency and financial reporting. External aspects can either be market-oriented, or can take the form of credit ranking, and/or social requirements. Due to the original orientation of the Sarbanes/Oxley Law, concentrating solely on financial disclosure and given its decisive and tremendous influence on all other similar corporate governance legislations all over the world, most writings on corporate governance have dealt with solely internal corporate governance mechanisms. This book aim is to fill up the gap by using a systemic approach and giving a global picture of the corporate governance theoretical foundations, mainly by putting the emphasis on its double dimension: internal and external.

Download or read book Effects of External and Internal Corporate Governance Mechanisms on Investment Opportunity Set and Firm Performance written by 胡芳慈 and published by . This book was released on 2005 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Associations Between Internal and External Corporate Governance Characteristics and the Consequences of Regulating Governance Practices written by William R. Baber and published by . This book was released on 2012 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: We characterize the corporate governance system as a portfolio of external and internal governance procedures that addresses firm-specific governance problems. External governance consists of statutory and contractual provisions that determine the costs of active shareholder participation in the management process. Internal governance concerns interaction between firm management and Boards of Directors. The evidence suggests that external and internal corporate governance mechanisms function as substitutes. Further analysis indicates that associations between internal and external governance characteristics are less substantial after than before recent corporate governance regulation. Moreover, we find that provisions that weaken external governance are more likely in firms where increases in internal governance are substantial. Such evidence raises questions regarding the consequences of corporate governance legislation such as that imposed by the 2002 Sarbanes Oxley Act.

Download or read book Connecting the Dots Bringing External Corporate Governance Into the Corporate Governance Puzzle written by Ruth V. Aguilera and published by . This book was released on 2015 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance research has largely focused on internal governance mechanisms (i.e., the board of directors, controlling owners, and managerial incentives). However, much of this work ignores the role that external corporate governance practices play in preventing managers from engaging in activities detrimental to the welfare of shareholders, and the overall firm. In this essay, we first review and organize current research on external governance mechanisms and integrate this siloed body of work within the broader corporate governance equation. We explicitly focus on six external governance mechanisms: the legal environment, the market for corporate control, external auditors, stakeholder activism, rating organizations and the media. We discuss findings showing how external governance mechanisms act both as independent forces as well as in conjunction with internal corporate governance mechanisms. We conclude the review by mapping an agenda for future research on corporate governance that better integrates internal and external governance mechanisms. Our review suggests that studying different configurations of external and internal governance mechanisms will help us to better understand what factors and conditions lead to effective corporate governance.

Download or read book The Corporate Governance of Business Groups written by Ruth V Aguilera and published by . This book was released on 2023-05-31 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Corporate Governance of Business Groups first summarizes how the existing body of literature has defined and studied business groups (BG). It then discusses the arguments for why BGs exist and persist. To provide a contextual understanding of BGs, the authors present the worldwide distribution and structure of these organizations. Gaining an overview of BGs' and their affiliated firms' characteristics allows one to disentangle the various dimensions of their corporate governance, particularly focusing on identifying what we know about how they are governed and where future research should continue. The authors adopt a traditional corporate governance framework based on financial economics to discuss BGs' corporate governance mechanisms. This financial perspective is complemented by incorporating an organizational and sociological lens to better understand how ties among the affiliate firms influence BG governance. Overall, the monograph argues that BG corporate governance is a fruitful path for scholars to continue to examine because many internal and external governance mechanisms remain understudied and the specificities of BGs generate differences in how these mechanisms are understood in these organizations, resulting in gaps in the literature ripe for future research.

Download or read book Corporate Governance Matrix written by Ahmed Elbadry and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: It is difficult for the companies to work with only one mechanism of corporate governance. Internal mechanisms must combine with external mechanisms regardless the type of industry or the country of analysis. I examine empirically the interaction between internal and external corporate governance mechanisms in the U.K. and US corporations. What is the best mix of corporate governance mechanisms which affect companies' performance and how each mechanism affects the others??

Download or read book The Relationship Between Internal Corporate Governance Mechanisms and the Quality of External Audit Process written by Nashat Ali Almasria and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Corporate Governance written by H. Kent Baker and published by John Wiley & Sons. This book was released on 2010-08-20 with total page 690 pages. Available in PDF, EPUB and Kindle. Book excerpt: A detailed look at the importance of corporate governance in today's business world The importance of corporate governance became dramatically clear at the beginning of the twenty-first century as a series of corporate meltdowns from managerial fraud, misconduct, and negligence caused a massive loss of shareholder wealth. As part of the Robert W. Kolb Series in Finance, this book provides a comprehensive view of the shareholder-manager relationship and examines the current state of governance mechanisms in mitigating the principal-agent conflict. This book also offers informed suggestions and predictions about the future direction of corporate governance. Relies on recent research findings to provide guidance through the maze of theories and concepts Uses a structured approach to put corporate governance in perspective Addresses essential issues related to corporate governance including the idea of principal-agent conflict, role of the board of directors, executive compensation, corporate monitoring, proxy contests and corporate takeovers, and regulatory intervention Corporate governance is an essential part of mainstream finance. If you need to gain a better understanding of this topic, look no further than this book.

Download or read book Governance Mechanisms Corporate Disclosure and the Role of Technology written by Robert B. H. Hauswald and published by . This book was released on 2005 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores a firm's reliance on internal and external governance mechanisms, recognizing that the choice of one instrument relative to the other is itself part of the governance policy of the firm. Starting from the premise that firms' disclosure policies can foster external scrutiny and takeover activity we show that such external instruments then become substitutes for internal monitoring and restructuring. We also argue that, since technological progress affects the returns to internal and external information acquisition, its incidence on firms' disclosure policy drives the relative effectiveness of the two governance mechanisms. Specifically, we show that improvements in dissemination technology lead to more disclosure and more successful external governance, but less board monitoring and internal restructuring. By contrast, general advances affecting information processing have the opposite effect unless they only enhance internal processing capabilities such as performance measurement and reporting systems, in which case they increase voluntary disclosure. We also find that firms' disclosure policies fall short of the social optimum, thus providing a rationale for regulation that sets and enforces minimal disclosure standards. Our results are robust to the introduction of agency conflicts between shareholders and their boards, although divergent interests reduce the overall effectiveness of technological advances in fostering good governance. Throughout we discuss empirical implications and lessons for the design of corporate-governance arrangements.

Download or read book When Do Governance Mechanisms Matter Most written by Derek Horstmeyer and published by . This book was released on 2017 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the interaction of internal and external firm-level governance mechanisms with industry-specific economic conditions to assess when they best serve current shareholders. We find that external governance (shareholder rights) is most valuable during industry upturns, with no differential benefit during downturns. For internal governance, we find that small boards are incrementally more valuable during upturns but that this result weakens/reverses during downturns, and inconclusive evidence regarding the state dependent value of institutional ownership. Contributions include showing: governance mechanisms have industry economic state dependent values; small boards may not always be optimal; and managers do not capture these inefficiencies through aggressive policy decisions, nor excessive compensation.

Download or read book Internal and External Supervisory Mechanisms in Corporate Governance written by Darko Tipuric and published by . This book was released on 2015 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: Good corporate governance depends on well balanced relations between supervisory mechanisms in the corporate governance process. Relations between the supervisory board, as the internal supervisory mechanism, and external auditing, as the external supervisory mechanism, are crucial for the development of good corporate governance practice. This paper focuses on analyzing the relationship between the supervisory board and external auditing in order to determine the current state of that relationship in the Republic of Croatia and to determine possible guidelines for improving the relationship between the supervisory board and external auditing in practice. In addition, this study analyzes the relationship between the supervisory board and external auditing, which could lead to the maximum efficiency of both the supervisory board and external auditing and tests that relationship in practice using publicly traded companies in Croatia. This study also analyzes the impact of the audit committee on the efficiency of the supervisory board and external auditing.

Download or read book Corporate Governance and Asset Sales written by Robert C. Hanson and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate firms that sell assets to determine whether corporate governance mechanisms are effective at controlling agency problems. Our evidence shows that these firms have lower managerial ownership and are more likely to make unrelated acquisitions, suggesting weak internal controls. Analysis of insider trading activity shows that, on average, net buying increases before the asset sale and shareholders benefit more when this occurs. Results suggest that how managers reach a given level of ownership provides more information about incentive alignment than just the level of ownership. Our results also highlight the dynamic nature of corporate restructuring as firms acquire and then sell assets.

Download or read book The Corporate Governance of Business Groups written by RUTH V. AGUILERA; RYAN FEDERO; BARTOLOME PASCUAL-F. and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Corporate Governance of Business Groups first summarizes how the existing body of literature has defined and studied business groups (BG). It then discusses the arguments for why BGs exist and persist. To provide a contextual understanding of BGs, the authors present the worldwide distribution and structure of these organizations. Gaining an overview of BGs' and their affiliated firms' characteristics allows one to disentangle the various dimensions of their corporate governance, particularly focusing on identifying what we know about how they are governed and where future research should continue. The authors adopt a traditional corporate governance framework based on financial economics to discuss BGs' corporate governance mechanisms. This financial perspective is complemented by incorporating an organizational and sociological lens to better understand how ties among the affiliate firms influence BG governance. Overall, the monograph argues that BG corporate governance is a fruitful path for scholars to continue to examine because many internal and external governance mechanisms remain understudied and the specificities of BGs generate differences in how these mechanisms are understood in these organizations, resulting in gaps in the literature ripe for future research.

Download or read book Commonalities and Prescriptions in the Vertical Dimension of Global Corporate Governance written by Lawrence A. Cunningham and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Discussions of comparative corporate governance have renewed the old question of corporate social responsibility, for whose benefit is the corporation to be operated? It is customary to think that US and UK law require that corporations be operated primarily for the benefit of shareholders. It is equally customary to think that German and other continental European law require that corporations be operated for the common good?shareholders, workers, creditors, communities and so on. At a general and abstract level both these customary ways of thinking are correct. But the truth of these general statements does not altogether hold up at the level of particular application. The variety of practices within particular countries and across national borders and the range of interests implicated and protected in different ways in both contexts render it difficult to describe national models except at a fairly high level of generality. Generalized descriptions can of course be very useful, but it is also useful when it is possible to conceive of mechanisms that enable more specific comparisons that transcend borders, whether international or intra-national. To do so requires a framework to distinguish types of governance mechanisms corporations use. Corporate governance mechanisms can be divided into three categories, two internal and one external. Internal governance mechanisms that address the relationship between those in control of the corporation on the one hand and all other constituents on the other (including shareholders, workers, lenders and communities) can be called vertical. Internal governance mechanisms that regulate directly the relationship between these various constituencies inter se can be called horizontal. External governance mechanisms are those rules and regulations imposed upon the corporate entity to address concerns beyond the penumbra of interests the corporation impacts directly, and include rules about competition and antitrust, national trade and security and so on. External and horizontal governance mechanisms tend to pose the most striking and specific distinguishing features of comparative corporate governance, while vertical governance mechanisms tend to be more universal and general. All these mechanisms are undergoing change and convergence around the world. Yet sufficient differences remain to enable presentation of generalized pictures of comparative corporate governance. This piece starts off with such pictures, describing in Part I a typical way of thinking about comparative corporate governance. It is a statement of the main characteristics of dominant models of corporate governance and finance: the market model (chiefly US and UK), the European bank model (chiefly Germany and France), and (more briefly) the Japanese bank model. These characteristics are increasingly blurring, however, and many differences have been overdrawn, as the descriptive and theoretical evidence presented in Part II suggests. Governance mechanisms from these models are converging or have been overlapping and market, structural and regulatory forces have contributed to these phenomena. A key insight is that problems of vertical corporate governance?the relation between those in control and others?and the mechanisms to address them transcend much of the underlying differences posed or created by the differing external and horizontal mechanisms of corporate governance. That insight suggests that there is reason to worry around the world as much or more about vertical corporate governance mechanisms than external or horizontal ones. Accordingly, Part III moves to a prescriptive identification and evaluation of key vertical governance issues of importance across borders. These include some of the central topics of corporate governance generally and ones most likely to pose increasing difficulties as globalization proceeds (executive selection and compensation; acquisition policies; and capital allocation and dividend policy) with an emphasis on the role boards of directors must and can play in addressing them. Among the chief mechanisms available to enhance such board action are rules governing or affecting director liability, constituency voice and unimpaired markets. The thesis, in short, is that signposts on the road to global corporate governance must mark such vertical governance issues and the pavement must be laid with such sensible vertical mechanisms to address the common problems facing corporate constituencies worldwide.