Corporate groups and Governance (original) (raw)
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Corporate Governance Frequently Asked Questions
2016
The term "corporate governance" refers to the structures, rules, and processes through which companies pursue their objectives. In other words, "corporate governance is the system by which companies are directed & controlled." 1 It encompasses a variety of issues, ranging from shareholder rights to a company's internal decision-making processes and control systems.
Lexikon der Arbeits- und Industriesoziologie, 2013
After a long hiatus, the study of corporate governance has recently enjoyed a revival,' but few points of consensus have emerged. Political differences are sometimes responsible for this impasse, 2 but failure to address the economics of corporate governance in microanalytic terms is also a factor. Lacking a framework that permits detailed analysis of transactions among the various constituencies of the corporation-labor, owners, suppliers, customers, the community, and management-commentators have presented their arguments at such a high level of generality that an assessment of the merits of the alternative positions is very difficult. This Article t Gordon B. Tweedy Professor of Economics of Law and Organization, Yale University. I gratefully acknowledge helpful comments by Reinier Kraakman, Henry Hansmann, and members of my class in Economic Organization. 1. The revival results partly from European efforts to implement co-determination. For recent discussions of co-determination, see M. AOKI, THE COOPERATIVE GAME THEORY OF THE FIRM chs.
Corporate Governance: Major Issue
Corporate governance is a term that refers broadly to the rules, processes, or laws by which businesses are operated, regulated, and controlled. The term can refer to internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations. The corporate governance system resembled the bank-based German model where these institutions could have played a big role in keeping their clients on the right track.
Corporate Governance versus Business Group Governance, Part 1
2021
Every firm in a high-income market economy relies on the mere existence of countless other firms to keep prices competitive throughout densely interconnected supply chains. Without this network externality, no firm forms; and without many firms, no network forms. Escaping this low-income trap is a primary problem in launching rapid catch-up development. Business group governance supersedes corporate governance in catch-up development, today and historically. Business groups can roll out new firms and expand existing firms in the interests of the group as a whole, and are thus a uniquely advantageous governance structure for rapid catch-up economic development
Issues in Corporate Governance
International Journal of Research in Commerce, Economics and Management, 2016
The present study finds that the new companies Act as it brings in sweeping lot of note in the new Companies Act as it brings in sweeping changes in the way the corporate is governed in India. The 2013 act enhances significantly the role and responsibilities of the board of directors by making them more accountable for their actions while protecting shareholder interest, also by mandating a woman director on the board, the intent of the 2013 act is to improve gender diversity and increase transparency. The 2013 Act clearly sets an example in corporate governance for other economies to emulate.
Why Corporate Governance Deserves Serious and Creative Thought
Academy of Management Perspectives, 2013
In their article, "Learning From Ancient Athens: Demarchy and Corporate Governance" (this issue), Zeitoun, Osterloh, and Frey contribute a useful summary of the debates about corporate governance and suggest a novel way to involve stakeholders in governance. Picking up from their discussion on corporate governance, this paper raises four issues. First, different kinds of corporations should have different kinds of governance policies. In particular, large global corporations are so important and so distinctive that they deserve special thought. Second, humanity must set priorities among goals. Governance policies that enable an individual corporation to operate effectively right now may cause long-term harm to humanity and the earth, and policies that benefit humanity and the earth may harm individual corporations. It is not clear who should set such priorities. Third, ideas about governance should consider technological and social changes that are propelling corporations toward entirely new forms. Much of the debate about corporate governance has focused on issues relating to 20th-century organizations and 20th-century societies, and significant changes in governance will take decades to take effect. Last, boards of directors exercise rather weak governance in comparison with governance by managerial hierarchies. Thus, it is more important to improve managerial governance. As commercially and politically neutral institutions that emphasize open, fact-based discussion, universities could usefully enhance the quality of governance by senior executives as well as outside stakeholders. This paper benefits from the valuable insights of Rick Goings and Jeffrey Sonnenfeld.
THEORETICAL EXPLORATION OF SELECTED CORPORATE GOVERNANCE CHALLENGES
2016
Corporate governance denotes ‘the relationships among the participants in determining the direction and performance of corporations’ (Monks and Minow, 2001). It tackles the intrinsic nature, purpose, integrity and identity of the corporation, as wells as its strategic direction, socio-economic and cultural context, externalities and constituencies (Tipurić, 2008, 2011). Governance processes operate at multiple levels, which is reflected in definitions of corporate governance. Narrow meaning refers to the governance of the corporation in the interest of dominant stakeholder groups (usually the shareholders), raising the issues of board structure and performance, executive compensation, disclosure and accountability of management to shareholders (including the minority ones). Broader meaning of governance denotes legal and habitual frameworks defining corporations and governing the pursuit of business within society (Hendry, 1998a), and involves a more extensive concept of accountability to stakeholders. Despite the prevalence of the former approach in research and policy, governance failures of particular corporations in developed economies and the difficulties of Central and Eastern European countries to build effective corporate governance regimes provoke questions whether these problems should solely be attributed to the shortcomings of particular individuals and corporations, or whether they are symptoms of more systemic governance failures.
E X C H A N G E WHY CORPORATE GOVERNANCE DESERVES SERIOUS AND CREATIVE THOUGHT
In their article, "Learning From Ancient Athens: Demarchy and Corporate Gover-nance" (this issue), Zeitoun, Osterloh, and Frey contribute a useful summary of the debates about corporate governance and suggest a novel way to involve stakeholders in governance. Picking up from their discussion on corporate governance, this paper raises four issues. First, different kinds of corporations should have different kinds of governance policies. In particular, large global corporations are so important and so distinctive that they deserve special thought. Second, humanity must set priorities among goals. Governance policies that enable an individual corporation to operate effectively right now may cause long-term harm to humanity and the earth, and policies that benefit humanity and the earth may harm individual corporations. It is not clear who should set such priorities. Third, ideas about governance should consider technological and social changes that are propelling corporations toward entirely new forms. Much of the debate about corporate governance has focused on issues relating to 20th-century organizations and 20th-century societies, and significant changes in governance will take decades to take effect. Last, boards of directors exercise rather weak governance in comparison with governance by managerial hierarchies. Thus, it is more important to improve managerial governance. As commercially and politically neutral institutions that emphasize open, fact-based discussion, universities could usefully enhance the quality of governance by senior executives as well as outside stakeholders.
Corporate Governance Regulation, Chapter 1 Introduction
2016
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