The Implementation of Corporate Governance Principles in an Emerging Economy: a critique of the situation in Cyprus

Krambia‐Kapardis, Maria; Psaros, Jim

doi:10.1111/j.1467-8683.2006.00492.x

Cited by 43 publications

(37 citation statements)

References 20 publications

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“…shareholder model) [30,34,35]. Governance codes, which are more in line with the Anglo-Saxon model, can be found not only in the established European economies [30] but also in emerging economies [34]. The explanation for this convergence may lay in the efforts of transnational organizations (e.g.…”

Section: The Role Of Codes In Convergence Of Governance Practicesmentioning

confidence: 82%

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Corporate Governance Codes and Their Role in Improving Corporate Governance Practice

Duh¹

2017

Corporate Governance and Strategic Decision Making

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Good corporate governance (CG) is primarily the responsibility of every company, and both hard law and soft law should provide comprehensive corporate governance framework, thereby encouraging the introduction of high governance standards and best practices in the companies' corporate governance system. The aim of this contribution is to broaden understanding on the role of codes of good governance in improving corporate governance practice on the case of Slovenia. The findings of research studies and analyses of the content of the Slovenian CG Code and its adoption in Slovenian companies show that the code has been playing an important role in developing corporate governance practice in Slovenia. Additionally, such analyses provide important cognitions on the adoption of the CG Code in Slovenian companies by revealing improvements in the governance practice and indicating those areas where changes are required. That is a way such monitoring and analyses should be done on the regular basis together with reporting on the monitoring results. This can considerably contribute to better understanding of the code's recommendations among companies, promote debate and thus foster awareness of the underlying issues. Future analyses should address not only the statements on compliance but also how companies actually implement the code's recommendations.

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Section: The Role Of Codes In Convergence Of Governance Practicesmentioning

confidence: 82%

“…In some countries, corporate collapses and scandals triggered the issues or revisions of corporate governance codes. For example, in Cyprus, the Cyprus Stock Exchanges introduced the Cypriot Corporate Governance Code in 2002 as a response to the major stock exchange collapse [34].…”

Section: Codes As a Form Of Soft Governance Regulationsmentioning

confidence: 99%

Corporate Governance Codes and Their Role in Improving Corporate Governance Practice

Duh¹

2017

Corporate Governance and Strategic Decision Making

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“…As such it would appear that the definition of independence has been interpreted in a liberal way and the participation of so-called independent directors is primarily tokenistic (e.g. Ow-Yong and Guan 2000; Alves and Mendes 2004;Krambia-Kapardis and Psaros 2006).…”

Section: Board Diversity and Independencementioning

confidence: 98%

Board Composition and Financial Performance: Uncovering the Effects of Diversity in an Emerging Economy

2011

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We examine the key elements of board diversity (or heterogeneity) amongst listed companies operating in an emerging economy (Mauritius) and the extent to which these influence financial performance. Specifically, we ask whether there is evidence of tangible benefits in pursuing a strategy of board diversity in terms of gender-, age-, educational background and independence in a corporate context which has long been dominated by familyled and 'closed' boardrooms. In light of recent corporate governance developments which appear to foster greater diversity, we examine data from the 2007 annual reports of all 42 companies listed on the Stock Exchange of Mauritius. We find that (i) women remain poorly represented on boards (ii) there is a relatively satisfactory level of heterogeneity in terms of educational background, age and independence in relation to developed countries. We also find significant regression coefficients for all four variables in terms of their impact on short-term performance. However, these relationships are characterised by both negative and positive impacts thereby leading to discussions on the validity of a strict heterogeneous or homogeneous board composition in the context of a developing economy.

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“…In particular, the attempts have been prominent in developing countries, as their firms are being privatized and seek to attract and retain foreign capital investments. To help developing economies to create and adopt codes of good governance, the OECD developed in 1999 the "OECD Principles of Corporate Governance," which has been serving as a guiding rule for much of the corporate governance reforms (Coombes and Watson, 2001;Krambia-Kapardis and Psaros, 2006). For example, the new Russian code of good governance issued in 2002 is seen as an attempt to impose an Anglo-Saxon model of governance on Russian domestic businesses by emphasizing the principle of shareholder protection (Roberts, 2004).…”

Section: Cross-country Level: Diffusion Of Codes and Governance Convementioning

confidence: 99%

“…As it is to be expected, in developing countries, compliance with codes is scarce. For example, research on the Cyprus code of good governance by Krambia-Kapardis and Psaros (2006) finds a low level of compliance with all significant aspects of the code. This is in the context of Cyprus, which not only has weak capital markets and legal support, but also a low degree of free market controls, with highly concentrated ownership, and unreliable information flow.…”

Section: Firm-level: Compliance and Effectivenessmentioning

confidence: 99%

Codes of Good Governance

Aguilera¹,

Cuervo-Cazurra²

2009

Corporate Governance

375

220

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Manuscript Type: ReviewResearch Question/Issue: We review the recent developments in the area of codes of good governance, a set of best practice recommendations regarding the behavior and structure of the board of directors. Research Findings/Results: Our review of the literature on codes of good governance highlights their rapid spread around the world and how academic research has lagged behind in analyzing this topic. Despite the criticism that the codes' voluntary nature limits their ability to improve governance practices, codes of good governance appear to have generally improved the governance of countries that have adopted them, although there is need for additional reforms. Theoretical Implications: Unfortunately, research on codes of good governance has developed in insolation with little cross-fertilization across the different disciplines. We propose a multi-level framework to discuss three main topics that have emerged within the codes literature: the motivations behind the diffusion of codes across countries and its implications for convergence of corporate governance practices; the content of the codes and their "comply or explain" dimension; and the relationship between code compliance and firm performance. We conclude by proposing four areas of future research. Practitical Implications: Code development, adoption, and compliance are directly related to issues surrounding the governance of the firm, and in particular to all the interactions that a director has inside and outside the firm. Codes are regulations that emerge from policy-making negotiations between multiple stakeholders, such as the state (via the stock market regulators) and the investors.

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The Implementation of Corporate Governance Principles in an Emerging Economy: a critique of the situation in Cyprus

Cited by 43 publications

References 20 publications

Corporate Governance Codes and Their Role in Improving Corporate Governance Practice

Corporate Governance Codes and Their Role in Improving Corporate Governance Practice

Board Composition and Financial Performance: Uncovering the Effects of Diversity in an Emerging Economy

Codes of Good Governance

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