Corporate Governance in Bangladesh: A Comparison with Other Emerging Market Countries

  • Chowdhury Saima Ferdous
  • Chris Mallin
  • Kean Ow-Yong
Part of the CSR, Sustainability, Ethics & Governance book series (CSEG)


Corporate governance has developed a higher profile in recent years in many emerging markets. Bangladesh as an emerging country provides an interesting case study. Whilst its economy has achieved an impressive growth rate, weak governance has caused an increasing number of companies to fail. Governance codes have been developed in many other emerging countries including Bangladesh and a comparative analysis may ascertain if their provisions are internationally compatible. This chapter discusses the theoretical framework and outlines the various governance codes and guidelines in Bangladesh and contrasts them with the OECD Principles of Corporate Governance as well as those codes in India and Pakistan. Using case studies and examples, we illustrate the key corporate governance characteristics typically found in companies in these countries. We highlight the common governance features and discuss their differences. Our chapter outlines a number of the practical and policy implications for corporate governance in the emerging markets of Bangladesh, Pakistan and India.


Corporate Governance Independent Director Audit Committee International Financial Reporting Standard Minority Shareholder 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Adu-Amoah, A., Tsamenyi, M., & Onumah, J. M. (2008). The influence of social and political relations on corporate governance systems: The case of rural banks in Ghana. Research in Accounting in Emerging Economies, 8, 311–333.CrossRefGoogle Scholar
  2. Aggarwal, R. (2010). Independent directors: Time to introspect, suspect, respect – an Indian perspective. Journal of Indian Business Research, 2(2), 123–132.CrossRefGoogle Scholar
  3. Aguilera, R. V., & Cuervo-Cazurra, A. (2009). Codes of corporate governance. Corporate Governance: An International Review, 17(3), 376–387.CrossRefGoogle Scholar
  4. Akkermans, D., van Ees, H., Hermes, N., Hooghiemstra, R., Van de Laan, G., Postma, T., & van Witteloostuijn, A. (2007). Corporate governance in the Netherlands: An overview of the application of the Tabakslat Code in 2004. Corporate Governance: An International Review, 15(6), 1106–1118.CrossRefGoogle Scholar
  5. Bauwhede, H. V. (2009). On the relation between corporate governance complaince and operating performance. Accounting and Business Research, 39(5), 497–513.CrossRefGoogle Scholar
  6. BEI. (2004). Code of corporate governance for Bangladesh. Dhaka: Bangladesh Enterprise Institute.Google Scholar
  7. Belal, A. R., & Owen, D. L. (2007). The views of corporate managers on the current state of, and future prospects for, social reporting in Bangladesh: An engagement based study. Accounting, Auditing and Accountability Journal, 20(3), 472–494.CrossRefGoogle Scholar
  8. Bhagat, S., & Black, B. S. (2002). The non-correlation between board independence and long-term firm performance. Journal of Corporation Law, 27, 1231–1273.Google Scholar
  9. Chen, J. C., & Roberts, R. W. (2010). Toward a more coherent understanding of the organization–society relationship: A theoretical consideration for social and environmental accounting research. Journal of Business Ethics, 97, 651–665.CrossRefGoogle Scholar
  10. Claessens, S., & Yurtoglu, B. B. (2013). Corporate governance in emerging markets: A survey. Emerging Markets Review, 15, 1–33.CrossRefGoogle Scholar
  11. Conyon, M., & Mallin, C. A. (1997). A review of compliance with Cadbury. Journal of General Management, 22, 24–37.Google Scholar
  12. Ehrgott, M., Reimann, F., Kaufmann, L., & Carter, C. R. (2011). Social sustainability in selecting emerging economy suppliers. Journal of Business Ethics, 98, 99–119.CrossRefGoogle Scholar
  13. Farooque, O. A., Zijl, T. V., Dunstan, K., & Karim, W. A. K. M. (2007). Ownership structure and corporate performance: Evidence from Bangladesh. Asia-Pacific Journal of Accounting and Economics, 14, 127–150.CrossRefGoogle Scholar
  14. Fernández-Rodríguez, E., Gómez-Ansón, S., & Cuervo-García, Á. (2004). The stock market reaction to the introduction of best practices codes by Spanish firms. Corporate Governance: An International Review, 12(1), 29.CrossRefGoogle Scholar
  15. Goodstein, J., Gautam, K., & Boeker, W. (1994). The effects of board size and diversity on strategic changes. Strategic Management Journal, 15(3), 241–250.CrossRefGoogle Scholar
  16. Igor, G., Joerg Richard, W., & Jochen, Z. (2006). Does compliance with the German corporate governance code have an impact on stock valuation? An empirical analysis. Corporate Governance: An International Review, 14(5), 432–445.CrossRefGoogle Scholar
  17. Imam, M. O., & Malik, M. (2007). Firm performance and corporate governance through ownership structure: Evidence from Bangladesh stock market. International Review of Business Research Papers, 3(4), 88–110.Google Scholar
  18. Krambia-Kapardis, M., & Psaros, J. (2006). The implementation of corporate governance principles in an emerging economy: A critique of the situation in Cyprus. Corporate Governance: An International Review, 14(2), 126–139.CrossRefGoogle Scholar
  19. Letza, S., Sun, X., & Kirkbride, J. (2004). Shareholding versus stakeholding: A critical review of corporate governance. Corporate Governance: An International Review, 12(3), 242–262.CrossRefGoogle Scholar
  20. MacNeil, I., & Li, X. (2006). “Comply or Explain”: Market discipline and non-compliance with the Combined Code. Corporate Governance: An International Review, 14, 486–496.CrossRefGoogle Scholar
  21. Mallin, C., & Ow-Yong, K. (2012). Factors influencing corporate governance disclosures: Evidence from Alternative Investment Market (AIM) Companies in the UK. European Journal of Finance, 18(5–6), 515–533.CrossRefGoogle Scholar
  22. Mir, M., & Rahaman, A. S. (2005). The aoption of international accounting standards in Bangladesh. Accounting, Auditing and Accountability Journal, 18(6), 816–841.CrossRefGoogle Scholar
  23. Narayanaswamy, R., Raghunandan, K., & Rama, D. V. (2012). Corporate governance in the Indian context. American Accounting Association, 26(3), 583–599.Google Scholar
  24. OECD. (1999). Principles of corporate governance. Paris: OECD.Google Scholar
  25. OECD. (2004). Principles of corporate governance. Paris: OECD.Google Scholar
  26. Ow-Yong, K., & Cheah, K. G. (2000). Corporate Governance Codes: A comparison between Malaysia and the UK. Corporate Governance: An International Review, 8(2), 125–132.CrossRefGoogle Scholar
  27. Palit, S. K. (2006). The impact of socio-economic reforms on governance: the Bangladesh experience. Journal of Administration and Governance, 1(1), 68–83.Google Scholar
  28. Panday, P. K., & Mollah, M. A. H. (2011). The judicial system of Bangladesh: An overview from historical viewpoint. International Journal of Law and Management, 53(1), 6–31.CrossRefGoogle Scholar
  29. Parsa, S., Chong, G., & Isimoya, E. (2007). Disclosure of governance information by small and medium-sized companies. Corporate Governance, 7(5), 635–648.CrossRefGoogle Scholar
  30. Rashid, A., Zoysa, A. D., Lodh, S., & Rudkin, K. (2010). Board composition and firm performance: Evidence from Bangladesh. Australasian Accounting Business and Finance Journal, 4(1), 76–95.Google Scholar
  31. Rwegasira, K. (2000). Corporate governance in emerging capital markets: Whither Africa? Corporate Governance: An International Review, 8(3), 258–267.CrossRefGoogle Scholar
  32. Sarker, A. E. (2011). The political economy of public enterprise privatization: The case of Bangladesh. International Journal of Management, 28(3), 595–611.Google Scholar
  33. Wanyama, S., Burton, B., & Hellier, C. (2009). Frameworks underpinning corporate governance: Evidence on Ugandan perceptions. Corporate Governance: An International Review, 17(2), 159–175.CrossRefGoogle Scholar
  34. World Bank. (2009). Report on the Observance of Standards and Codes (ROSC): Corporate Governance contry assessment. The World Bank: Bangladesh.Google Scholar
  35. Zahra, S. A., & Pearce, J. A. (1989). Boards of directors and corporate financial performance: A review and integrative model. Journal of Management, 15(2), 291–334.CrossRefGoogle Scholar
  36. Zattoni, A., & Cuomo, F. (2008). Why adopt Codes of Corporate Governance? A comparison of institutional and efficiency perspectives. Corporate Governance: An International Review, 16(1), 1–15.CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  • Chowdhury Saima Ferdous
    • 1
  • Chris Mallin
    • 2
  • Kean Ow-Yong
    • 3
  1. 1.Department of International BusinessThe University of DhakaDhakaBangladesh
  2. 2.Norwich Business SchoolUniversity of East AngliaNorwichUK
  3. 3.Birmingham Business SchoolUniversity of BirminghamBirminghamUK

Personalised recommendations