Institutional Antecedents of Corporate Governance Legitimacy

Abstract

The authors studied panel data for corporate governance ratings in 50 countries between 1997 and 2005 to understand what the country-level predictors of corporate governance legitimacy might be. Using neo-institutional theory, they found that all three pillars of institutionalization influenced perceptions of corporate governance at the national level—specifically, (a) the greater the extent of law and order, (b) the more the culture emphasized global competitiveness, and (c) the less the prevalence of corruption, the higher the corporate governance legitimacy within a nation. This study refines and extends the comparative corporate governance literature, as well as the neo-institutional perspective.

Seeking Legitimacy Through CSR: Institutional Pressures and Corporate Responses of Multinationals in Sri Lanka

“…Those studies which have looked at firm-level legitimacy-seeking strategies have focused on other CSR-related practices such as corporate governance (Selekler-Goksen and Yildirim Oktem, 2009;Judge et al, 2008;Mason et al, 2007), environmental management practices (See for example Hoffman, 1999;Bansal & Clelland, 2004;Jennings and Zandbergen, 1995;Clemens and Douglas, 2006), or corporate communications (Castello and Lozano, 2011). Therefore, it is a challenge to find empirical studies that show the forms and processes of legitimacy-seeking behaviour of MNEs' subsidiaries who use CSR in the form of community initiatives.…”

Environmental Factors Influencing Corporate Governance

“…The international news media is responsible for putting pressure on corporate boards of multinational companies conducting business in South Africa during the apartheid regime (Anonymous, 1985). In Latin America, the maltreatment, victimization, and imprisonment of journalists have led to limited press freedoms and consequently this has had a negative impact on business activity (Perkins, 2001) Sadly, at the moment, there are no known systematic research studies that have examined the relationship between freedom of the press and corporate governance effectiveness (Judge et al, 2008). However, there are a few closely related studies that suggest a positive relationship between press freedom and corporate governance practices.…”

Where Are All the Women? Institutional Context and the Prevalence of Women on the Corporate Board of Directors

“…Institutions are transported by various carriers -symbolic and relational systems and routines -and they operate at multiple levels of jurisdiction" (p 33). Scott's (1995) framework has successfully been applied in management research on corporate governance (Judge et al, 2008), logistics management (Koulikoff-Souviron and and international business (Trevino et al, 2008). The regulative, normative and cultural-cognitive structures, or "pillars" as Scott refers to them, included in the above definition form the core elements of his framework.…”