Internal and external corporate governance mechanisms in the context of the emerging market

Abstract

This review paper highlights the internal and external corporate governance mechanisms in the State of Kuwait. It sheds light on the legal environment by which Shari’ah is a major source of legislation. Since culture is influenced by religion, the ownership structure is, therefore, affecting legislation. Further, it discusses the market for corporate control, which is an important determinant of corporate governance external mechanism. Due to regional geopolitical instability, disruption of the full implementation of corporate governance and code of ethics is prevalent. Nevertheless, Kuwait is on the right path for the reinforcement of corporate governance and its code of ethics.