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The Diffusion of Corporate Governance Standards in an Emerging Market: Evidence from Istanbul Stock Exchange

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Abstract

Corporate governance concepts and principles have originated mainly in developed markets that are characterized by strong shareholder protection and dispersed ownership structures. In order to integrate with the global financial markets, emerging markets and companies have realized the need to improve the quality of their governance. Good corporate governance principles spread globally as countries started issuing their own codes with the encouragement of transnational institutions, such as the World Bank and the OECD. The Corporate Governance Principles of OECD, drafted in 1999 and amended in 2004, have become the benchmark for corporate governance codes of both developed and emerging markets (Mallin, 2004). These principles are recommendations by the OECD of best practices to be emulated by all countries and are based generally on the Anglo-Saxon corporate governance system and its mechanisms. Thus, they do not specifically address the relevant governance issues of different national institutional contexts.

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© 2012 Bengi Ertuna and Ali Tükel

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Ertuna, B., Tükel, A. (2012). The Diffusion of Corporate Governance Standards in an Emerging Market: Evidence from Istanbul Stock Exchange. In: Boubaker, S., Nguyen, D.K. (eds) Board Directors and Corporate Social Responsibility. Palgrave Macmillan, London. https://doi.org/10.1057/9780230389304_12

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