The effectiveness of governance mechanisms in emerging markets: A review
Open Access
- 2 March 2020
- journal article
- review article
- Published by Virtus Interpress in Corporate Ownership and Control
- Vol. 17 (3), 8-26
- https://doi.org/10.22495/cocv17i3art1
Abstract
Corporate governance has advanced hugely in the last two decades and many governance best practices have emerged that focuses on measures companies should take in order to improve their governance. These suggested mechanisms are effective in developed markets because they are a remedy for problems that occur in those markets. But are these mechanisms also effective in emerging markets? By reviewing the literature, this paper critically discusses and compares the effectiveness of governance mechanisms (both internal and external) in emerging and developed markets and finds that while the classic mechanisms such as board structure and independence are not effective in emerging markets, there exist some alternative mechanisms such as external audit or dividend policy that are more effective.Keywords
This publication has 100 references indexed in Scilit:
- The impact of corporate governance and external audit on compliance to mandatory disclosure requirements in ChinaJournal of International Accounting, Auditing and Taxation, 2012
- Business groups and market failures: A focus on vertical and horizontal strategiesAsia Pacific Journal of Management, 2006
- Oscillating between a relationship-based and a market-based model: The Salim GroupAsia Pacific Journal of Management, 2006
- Managerial ties, control and deregulation: An investigation of business groups entering the deregulated banking industry in TaiwanAsia Pacific Journal of Management, 2006
- Corporate Governance and Institutional Transparency in Emerging MarketsJournal of Business Ethics, 2005
- Board meeting frequency and firm performanceJournal of Financial Economics, 1999
- Foreign Ownership and Profitability: Property Rights, Control, and the Performance of Firms in Indian IndustryThe Journal of Law and Economics, 1999
- Management ownership and market valuation: An empirical analysisJournal of Financial Economics, 1988
- Separation of Ownership and ControlThe Journal of Law and Economics, 1983
- Modification of a judgmental style through group interaction.Journal of Personality and Social Psychology, 1966