Abstract
The shortcomings and inefficiencies of corporate governance are intended to be mitigated by the implementation of codes of best practice. While internationally the codes cover similar set of recommendations on board work, transparency, investor protection and empowerment as well as cooperation with various stakeholders, the adoption and factual compliance with these guidelines remains an issue. The instrumental treatment of the recommendations and the superficial explanations for non-compliance limit the impact of this form of self-regulation.
This chapter addresses the shortcomings of corporate governance best practice. It aims at presenting motivations for adopting corporate governance guidelines as revealed by listed companies in the annual declaration of conformity included in the company report. It also shows limitations for implementation of guidelines in practice and their importance for the investment decision by investors. The arguments for best practice code and the statements of compliance with respect to the quality of corporate governance are confronted with the insights and observations collected during 20 interviews with board directors, corporate governance experts, auditors, lawyers and funds representatives.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Aguilera, R., & Cuervo-Cazura, A. (2004). Codes of good governance worldwide: What is the trigger? Organization Studies, 25, 415–443.
Aluchna, M. (2009). Implementation of best practice code. Practical implications from the Warsaw Stock Exchange. Social Responsibility Journal, 5, 123–140.
Aluchna, M. (2015). Własność a corporate governance [Ownership and corporate governance]. Warszawa: Potlext.
Arcot, S., Bruno, V., & Faure-Grimaud, A. (2010). Corporate governance in the UK: Is the comply or explain approach working. International Review of Law and Economics, 30, 193–201.
Baker, H., & Anderson, R. (2011). An overview of corporate governance. In H. Baker & R. Anderson (Eds.), Corporate governance. A synthesis of theory, research and practice. New York: Wiley.
Bauer, R., Gunster, N., & Otten, R. (2004). Empirical evidence on corporate governance in Europe: The effect on stock returns, firm value and performance. Journal of Asset Management, 5, 91–104.
Berglöf, E., & Claessens, S. (2006). Enforcement and good corporate governance in developing countries and transition economies. World Bank Research Observer, 21, 123–150.
Bistrowa, J., & Lace, N. (2012). Corporate governance best practice and stock performance: case of CEE companies. Systemics, Cybernetics and Informatics, 10, 63–69.
Cadbury Report. (1992). Report of the committee on the financial aspects of corporate governance. Accessed 12 January, 2016, from http://www.ecgi.org/codes/documents/cadbury.pdf
Campbell, K., Jerzemowska, M., & Najman, K. (2006). Wstępna analiza przestrzegania zasad nadzoru korporacyjnego przez spółki notowane na GPW w Warszawie w 2005 roku [The Initial Analysis of Compliance with Corporate Governance Guidelines by the companies listed on Warsaw Stock Exchange in 2005]. In: Rudolf, S. ed. Tendencje zmian w nadzorze korporacyjnym [Latest Tendencies in Corporate Governance], Lódż.
Campbell, K., Jerzemowska, M., & Najman, K. (2009). Corporate governance challenges in Poland: Evidence from “comply or explain” disclosures. Corporate Governance: The International Journal of Business in Society, 9, 623–634.
Chizema, A. (2008). Institutions and voluntary compliance: The disclosure of individual executive pay in Germany. Corporate Governance, 16, 359–374.
Clarke, T., & Chanlat, J. (2009). Introduction: A new order? The recurring crisis in Anglo-American corporate governance and the increasing impact on European economies and institutions. In T. Clarke & J. F. Chanlat (Eds.), European corporate governance. Readings and perspectives (pp. 1–42). London: Routledge.
Cuervo, A. (2002). Corporate governance mechanisms: A plea for less code of good governance and more market control. Corporate Governance, 10, 84–93.
Davies, M. (2008). The impracticality of an international ‘one size fits all’ corporate governance code of best practice. Managerial Auditing Journal, 23, 532–544.
Doidge, C., Karoly, A., & Stulz, R. (2007). Why do countries matter so much for corporate governance? Journal of Financial Economics, 86, 1–39.
Fligstein, N., & Choo, J. (2005). Law and corporate governance, law and corporate governance. Annual Review of Law and Social Science, 1, 61–84.
Goncharov, I., Werner, J., & Zimmermann, J. (2006). Does compliance with the German corporate governance code have an impact on stock valuation? An empirical analysis. Corporate Governance, 14, 432–445.
Hermes, N., Postma, T., & Zivkov, O. (2007). Corporate governance codes and their contents: An analysis of Eastern European codes. Journal for East European Management Studies, 12, 53–74.
Isaksson, M. (2009). Corporate governance and the financial crisis: Questions and answers, OECD. Accessed 16 October, 2010, from http://www.oecd.org/document/49/0,3343,en_2649_34813_43063537_1_1_1_1,00.html
Kirkpatrick, G. (2009). The corporate governance lessons from the financial crisis, OCED. Accessed 16 October, 2010, from http://www.oecd.org/dataoecd/32/1/42229620.pdf
Larcker, D., & Tayan, B. (2011). Corporate governance matters. A closer look at organizational choices and their consequences. Upper Saddle River: Pearson Education.
Lipman, F. (2007). Summary of major corporate governance principles and best practices. International Journal of Disclosure and Governance, 4, 309–319.
MacNeil, I., & Li, X. (2006). “Comply or explain”: Market discipline and non-compliance with the combine code. Corporate Governance, 14, 486–496.
Mallin, C. (2004). Corporate Governance. Oxford: Oxford University Press.
Monks, R., & Minow, N. (2004). Corporate governance. Oxford: Blackwell Business.
OECD. (2004). Principles of corporate governance. Accessed 9 January, 2016, from http://Www.Oecd.Org/Corporate/Ca/Corporategovernanceprinciples/31557724.Pdf
OECD. (2015). G20/OECD Principles of vorporate governance. Accessed 9 January, 2016, from http://www.oecd.org/daf/ca/Corporate-Governance-Principles-ENG.pdf
Renders, A., Gaeremynck, A., & Sercu, P. (2010). Corporate-governance ratings and company performance: A cross-European study. Corporate Governance: An International Review, 18, 87–106.
Roe, M. (2003). Political determinant of corporate governance. Political context, corporate impact. Oxford: Oxford University Press.
Stulz, R., & Williamson, R. (2003). Culture, openness and finance. Journal of Financial Economics, 70, 313–349.
Tricker, B. (2012). Corporate governance. Principles, policies and practices. Oxford: Oxford University Press.
Zattoni, A., & Cuomo, F. (2008). Why adopt codes of good governance? A comparison of institutional and efficiency perspective. Corporate Governance, 16, 1–15.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer International Publishing AG
About this chapter
Cite this chapter
Aluchna, M. (2017). Corporate Governance Best Practice: Tasks and Shortcomings. In: Aluchna, M., Idowu, S. (eds) Responsible Corporate Governance. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-55206-4_6
Download citation
DOI: https://doi.org/10.1007/978-3-319-55206-4_6
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-55205-7
Online ISBN: 978-3-319-55206-4
eBook Packages: Business and ManagementBusiness and Management (R0)