This article sets out a framework for the analysis of corporate governance and international business. We take a broad perspective on corporate governance mechanisms and consider possible synergies between corporate governance and international business (IB) research. We summarize the papers included in this Focused Issue, and draw out their main contributions to the literature. We compare and ...

This paper investigates the relationship between corporate governance and economic development and well-being. It finds that better corporate frameworks benefit firms through greater access to financing, lower cost of capital, better firm performance, and more favorable treatment of all stakeholders. Numerous studies agree that these channels operate not only at the level of the firms, but in s...

This chapter surveys the theoretical and empirical research on the main mechanisms of corporate law and governance, discusses the main legal and regulatory institutions in different countries, and examines the comparative governance literature. Corporate governance is concerned with the reconciliation of conflicts of interest between various corporate claimholders and the resolution of collecti...

This paper explores a firm’s reliance on internal and external governance mechanisms as part of the firm’s overall governance policy. We argue that firms’ disclosure policies, by promoting greater transparency, foster external scrutiny and thus activity in the market for corporate control. Takeovers and internal board monitoring are therefore substitute instruments for corporate governance. How...

Corporate governance is a complex issue, the focal point of which is the exercise of power. The power has limits, however, imposed by both legislation and contracts. Also, even if the overarching power belongs to the shareholders, residual power cannot be exercised to the detriment of the rights of the other stakeholders. Because the governance system and resulting structures have a major influ...

This paper reviews the empirical literature on the corporate governance of banks. We start by highlighting the main differences between banks and non-financial firms and focus on three characteristics which make banks special: (i) regulation, (ii) the capital structure of banks, and (iii) the complexity and opacity of their business and structure. Next, we discuss the characteristics of corpora...

The aim of this paper is to discuss the effect of corporate governance mechanisms on controlling CEOs’ emotions and some behavioral biases. Departing from a sample of 40 public traded Tunisian firms, we test the impact of the board of directors on managing CEO’s irrationalities. Our results highlight strong evidence on the role of the board characteristics, especially the board independence, a ...

Title of dissertation: INTERNATIONAL CORPORATE GOVERNANCE: A STUDY OF COMPLEMENTARITIES AND CONVERGENCE Meghana Ayyagari, Doctor of Philosophy, 2004 Dissertation directed by: Professor Vojislav Maksimovic Department of Finance This thesis contributes to contemporary research in international corporate governance by investigating two related questions: (1) Is there a convergence in corporate gov...

The most important tool for promoting the bank’s stability and health is the establishment of a standard corporate governance structure for managing the bank's business. Redesigning the relationships between bank management, shareholders and the rest of the bank’s stockholder, including the objectives, the risk and audit indices, and internal control of the bank, is recognized as the foundation...

Economists have directed attention to the role of corporate governance in determining the performance of business enterprises well before the issue was thrust into prominence by the troubles of Enron, WorldCom, and others. Much of this literature examines the consequences of different mechanisms for corporate control. An important part of this literature stresses the role of banks in corporate ...