Corporate governance reforms in emerging countries: A case study of Bangladesh

Biswas, Pallab Kumar

doi:10.1057/jdg.2013.31

Cited by 9 publications

(9 citation statements)

References 41 publications

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“…Given Bangladesh’s political, cultural and economic forces, the market offers little protection to minority shareholders (Solaiman, 2006), challenging the efficacy of the Anglo-American-style CG Guidelines (Li and Harrison, 2008; Haxhi and van Ees, 2010). An undeveloped capital market, together with a high reliance on bank financing, limited monitoring, a poor legal framework (Siddiqui, 2010) and weak insider trading legislation and enforcement (Biswas, 2012), means that CG monitoring and enforcement mechanisms are weak, allowing many wrongdoers to go undetected (Uddin and Choudhury, 2008; World Bank, 2009). These tensions are further complicated by the prevalence of corruption in Bangladesh, which is one of the “most important determinants of social and environmental performance” in emerging markets (Claessens and Yurtoglu, 2013, p. 19)[5].…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

The impact of family vs non-family governance contingencies on CSR reporting in Bangladesh

Biswas

Roberts

Whiting

2019

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Purpose Based on the socioemotional wealth (SEW) perspective and agency theory, the purpose of this paper is to examine how the introduction of the 2006 Corporate Governance (CG) Guidelines and family governance affected the level of the corporate social responsibility (CSR) reporting of non-financial companies in Bangladesh. Design/methodology/approach The authors use multivariate regression to analyse 2,637 firm-level annual observations, from 1996 to 2011 annual reports of Bangladeshi publicly listed non-financial-sector companies, to investigate how firm-level CG quality affects CSR disclosure in family and non-family firms. Findings CG quality significantly increases the level of CSR disclosure and this relationship is stronger prior to the new CG Guidelines. Family firms’ CSR reporting levels are significantly lower than non-family firms’, and this effect is stronger after the change in the CG Guidelines. CEO duality, the presence of an audit committee and profitability improve family-firm CSR reporting in Bangladesh, while non-family CSR disclosures are positively associated with board size and firm competition. Board independence is not related to CSR disclosure. Originality/value The authors provide evidence of the benefit of the CG Guidelines’ introduction on company CSR disclosure in an emerging economy and the importance of specific governance mechanisms that differentiate family and non-family-firm CSR disclosures in Bangladesh using a SEW framework.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

The impact of family vs non-family governance contingencies on CSR reporting in Bangladesh

Biswas

Roberts

Whiting

2019

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“…In this regard, the board's image is factored against the percentage of outside or independent directors (Balachandran & Faff, 2015;Balc et al, 2013;Bauer et al, 2008; Organisation for Economic Co-operation and Development [OECD], 2015;Stein, 2008;Uddin & Choudhury, 2008). Independent directors should not be employees of the organisation and should have no relationship with the organisation, and they are expected to act as informants to the organisation (Biswas, 2015;Rashid, 2015b). Previous research has found mixed results about the effects of independent directors on MFIs' performance.…”

Section: Theoretical Discussion and Hypothesis Developmentmentioning

confidence: 99%

“…This practice is not uncommon in many Anglo-American nation-states, i.e. Australia, the UK, New Zealand, the US, and Canada (Biswas, 2015). The two-tier or monitoring board practices are absent in the microfinance sector (Hasan et al, 2019).…”

Section: Microfinance Board Practices In Bangladeshmentioning

confidence: 99%

“…Biswas (2013) empirically investigated the corporate governance reforms and agency environment in Bangladesh. The reformed corporate governance practices, undertaken in the early 1990s, have provided immense opportunities for more development, particularly in enforcing and monitoring via an internal supervisory body and external regulators (Biswas, 2015;Rashid, 2015a). Therefore, domestic forces and global monetary agencies ought to be equally affected by such reforms.…”

Section: Microfinance Board Practices In Bangladeshmentioning

confidence: 99%

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Effects of board independence on microfinance institutions’ performance: The case of Bangladesh

Hussain

Azhar

Rahman

2021

AJAP

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This study aims to examine the relationship between board independence and the performance of microfinance institutions (MFIs). Early studies on microfinance have made immense contributions, particularly in identifying the factors that influence performance. However, studies addressing board independence and its impact on performance remain scarce. Design/ Methodology/ Approach: This study utilised a panel dataset involving 80 MFIs in Bangladesh for the period of 2005-2018. A panel data regression technique was applied to measure the relationship between MFIs' performance and board independence based on the 80 cross-sectional MFIs with 13 years of data. Research findings: Our findings suggest that independent directors and board size facilitate MFIs to become financially sustainable. The findings also indicate that CEO duality enhances institutional sustainability but does not enhance outreach to the poor. While the results of this study partially support the proposition of stewardship theory, the proposition of agency theory is rejected. This indicates that MFIs in Bangladesh are operated by motivated agents with similar interests to the MFIs' owners. Theoretical contribution/ Originality: This investigation contributes to the microfinance governance literature by highlighting the argument that board independence reduces conflict between MFIs' principle and agent. This study also contributes to the global debate concerning CEO duality and MFIs' double bottom line performance from the perspective of a developing country, such as Bangladesh. Practitioner/ Policy implication: The practical implication of this research is on governance mechanisms in terms of their effectiveness, which is influenced by MFIs' competence. Since board members should promote stakeholders' interests rather than the interests of the organisation, there is a need for sound guiding principles that should form an integral part of the policy for better MFI governance practices. Limitation/ Implication: The limitation of this study mainly concerns the lack of evidence concerning whether or not every licensed MFI in Bangladesh has non-manageable stakeholders. Similarly, this study fails to capture the insolvency level of customers. Therefore, future studies may expand on this approach and create a measure for MFIs' outreach to the poor.

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“…Growth across all sectors leads to an increasing demand for accounting services (de Lange et al , 2015; Stainbank and Tewari, 2014). While academic research in accounting-related fields in Bangladesh has been expanding, this study has largely focused on governance issues (see Biswas, 2015; Biswas and Bala, 2016) and CSR reporting (see Belal and Owen, 2007; Khan et al , 2011; Islam and Dellaportas, 2011; Muttakin et al , 2015). Empirical research on CPD for the accounting profession in Bangladesh has been non-existent.…”

Section: Introductionmentioning

confidence: 99%

Bangladesh accountants and Continuing Professional Development

Halabi

Chowdhury

2018

JAEE

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Purpose The purpose of this paper is to examine professional accountant’s views on their satisfaction with Continuing Professional Development (CPD) offered by members of the Institute of Chartered Accountants of Bangladesh (ICAB). While there is a great deal of research on CPD and accountants in developed countries, less developing countries are absent from this literature, and there have been calls for this type of research. Design/methodology/approach The present study employed a survey of members of the ICAB. Findings Results show that accountants in Bangladesh are satisfied with the CPD provided by their profession, and when satisfaction is compared with more developed countries, Bangladesh is greater on a number of measures. ICAB members would like to also be provided with opportunities to undertake CPD in more ways than just face to face. Practical implications The study has important implications not only for accountants from emerging economies such as Bangladesh, but also for the International Federation of Accountants and other less developed countries (LDCs). The results advance the understanding of professional accounting bodies from an international perspective. Originality/value This is the first study of CPD and accounting professionals in LDCs. The information obtained can inform the development and practice of other professional accounting bodies in emerging economies.

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Corporate governance reforms in emerging countries: A case study of Bangladesh

Cited by 9 publications

References 41 publications

The impact of family vs non-family governance contingencies on CSR reporting in Bangladesh

The impact of family vs non-family governance contingencies on CSR reporting in Bangladesh

Effects of board independence on microfinance institutions’ performance: The case of Bangladesh

Bangladesh accountants and Continuing Professional Development

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