Corporate governance in SMEs: a systematic literature review and future research

Abstract

Purpose The purpose of this study is to examine the corporate governance of small and medium enterprises (SMEs) through a systematic literature review. Design/methodology/approach The review was conducted by analyzing 19 published studies in the field, leading to the identification of 14 journals and 40 authors. The relationship between corporate governance mechanisms and various aspects of SMEs’ performance was analyzed. The characteristics of corporate governance were classified into five categories: board, ownership, CEO, audit and age. Findings The review found a direct relationship between corporate governance mechanisms and various aspects of SMEs’ performance, including innovation, internationalization, auditing and risk of failure. The study also highlights the need for future research to adopt a behavioral perspective, to shift focus from identifying responsibilities to examining governance processes and to use nonlinear models and qualitative methods to effectively analyze the interrelated nature of the phenomena under study. Research limitations/implications The limitations of the review include the limited number of studies available for analysis, as well as the fact that most of the empirical research was based on evidence from European countries, with only a few papers focusing on other countries, such as the USA, China and Ghana. Originality/value The results of this review provide valuable insights for researchers and practitioners in the field of corporate governance in SMEs. The findings provide a foundational basis for further research in the area and highlight the need for future studies to adopt a behavioral perspective and use nonlinear models and qualitative methods.

CEO Compensation and SMEs Performance: A Structural Equation Modelling Approach from Jordanian Listed SMEs

“…There are some limitations on these stocks. These limitations could mean that the stocks cannot be sold for a set period or can't be sold before a set of performance standards are satisfied (Teixeira & Carvalho, 2023;Arindi et al, 2023).…”

“…The directors of the company may be seen as risk-averse, just like many reasonable people. (Teixeira & Carvalho, 2023). The implications of like behaviors explain that the majority of executives would want their comparison organized in a manner that they bear less personal risk (Asad, Asif, Allam, & Sheikh, 2021).…”

The Association of Board Characteristics and Corporate Social Responsibility Disclosure Quality: Empirical Evidence from Pakistan

“…For instance, CSR refers to a corporation's acts to benefit society which go beyond the law's requirements and the corporation's primary goal, which is to act in the shareholder's interest [39]. In contrast, CG is a framework for preserving accountability and aligning the corporation's aims with those of its stakeholders [40]. CG encompasses a set of processes, principles, and values that impact corporate behaviour and decision-making associated with CSR.…”

A nexus between corporate gender diversity and dividend payout: Evidence from Asia Pacific

“…Empirical studies have witnessed that by paying the dividend, the market value of the share price increased (Manneh, 2014;Murtaza et al, 2017). Corporate firms pay a dividend as residual, which reveals that the firm has a sound financial position (Manneh, 2014;Teixeira and Carvalho, 2023). Gender diversity possesses unique characteristics and implications for firms and investors, attracting all stakeholders in firms to the presence of women on board (Nadeem et al, 2020.…”