Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Governance codes in the developing and emerging countries: Do they look for the international role model?
Issue: Vol. 12, No 3, 2019
Published date: 09-2019 (print) / 09-2019 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Ivana Bosáková
University of Economics, Prague

Aleš Kubíček
University of Economics, Prague

Jiří Strouhal
Škoda Auto University
Keywords: corporate governance codes, comparative analysis, OECD, emerging countries
DOI: 10.14254/2071-789X.2019/12-3/17
Index PUBMS: 211fe786-f43b-11e9-bbfd-fa163e0fa1a0
Language: English
Pages: 251-272 (22)
JEL classification: G34

Over the last decade, a growing number of developing and emerging countries have begun addressing corporate governance practice and issued a national governance code. This paper analyses and compares the code contents and approaches of the 11 developing and emerging countries after the latest revision of the OECD Principles of Corporate Governance to examine whether these countries follow the international best practice despite the national specifics differ from those of developed countries. Individual codes are subjected to content analysis to evaluate the level of compliance with the OECD Principles. This paper goes beyond the well-known particulars of developed markets and provides a rare insight into the development of corporate governance frameworks in the developing and emerging countries in a cross-country manner. We contribute to recognition and assessment of good corporate governance in developing and emerging countries and examine what impact the OECD Principles have had beyond its membership base of high-developed countries.


1. Acemoglu, D., Johnson, S., & Robinson, J. A. (2001). The colonial origins of comparative development: An empirical investigation. American economic review, 91(5), 1369-1401.

2. Aguilera, R. V., & Cuervo-Cazurra, A. (2009). Codes of good governance. Corporate governance: An International Review, 17(3), 376-387.

3. Aguilera, R. V., & Jackson, G. (2010). Comparative and International Corporate Governance. The Academy of Management Annals, 4(1), 485-556.

4. Aguilera, R. V., & Cuervo-Cazurra, A. (2004), Codes of good governance worldwide: what is the trigger? Organization Studies, 25(3), 415-443.

5. Andres, C., & Theissen, E. (2008). Setting a fox to keep the geese—Does the comply-or-explain principle work?. Journal of Corporate Finance, 14(3), 289-301.

6. 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(2), 193-201.

7. Belas, J., Cipovova, E., & Demjan, V. (2014) Current trends in area of satisfaction of bank clients in the Czech republic and Slovakia. Tranformations in Business and Economics, 13(3): 219-234.

8. Black, B. S., Jang, H., & Kim, W. (2006). Does corporate governance predict firms' market values? Evidence from Korea. The Journal of Law, Economics, and Organization, 22(2), 366-413.

9. Burianová, L., & Paulík, J. (2014).Corporate Social Responsibility in Commercial Banking - A Case Study from the Czech Republic. Journal of Competitiveness, Vol. 6, Issue 1, pp. 50-70.

10. Chen, K. C.W., Chen, Z. & Wei, K.C. J. (2009). Legal Protection of Investors, Corporate Governance, and the Cost of Equity Capital. Journal of Corporate Finance, 15, 273-289.

11. Chen, V. Z., Li, J., & Shapiro, D. M. (2011). Are OECD-prescribed “good corporate governance practices” really good in an emerging economy? Asia Pacific Journal of Management, 28(1), 115-138.

12. Cicon, J. E., Ferris, S. P., Kammel, A. J., & Noronha, G. (2012). European Corporate Governance: a Thematic Analysis of National Codes of Governance. European financial management, 18(4), 620-648.

13. Claessens, S., & Yurtoglu, B. B. (2013). Corporate governance in emerging markets: A survey. Emerging markets review, 15, 1-33.

14. Cuomo, F., Mallin, C., & Zattoni, A. (2016), Corporate Governance Codes: A Review and Research Agenda. Corporate Governance: An International Review, 24(3), 222-241.

15. EBRD (2017). Corporate Governance in Transition Economies. Egypt Country Report.

16. Enrione, A., Mazza, C., & Zerboni, F. (2006). Institutionalizing codes of governance. American Behavioral Scientist, 49(7), 961-973.

17. Enriques, L., & Volpin, P. (2007). Corporate governance reforms in continental Europe. Journal of Economic Perspectives, 21(1), 117-140.

18. Hansmann, H., & Kraakman, R. (2004) The End of History for Corporate Law. In Gordon, J. N. and Roe, M. J. (eds) Convergence and Persistence in Corporate Governance, 33–68. Cambridge: Cambridge University Press.

19. Haxhi, I., & van Ees, H. (2010). Explaining diversity in the worldwide diffusion of codes of good governance. Journal of International Business Studies, 41(4), 710-726.

20. Hermes, N., Postma, T. J. B.M., & Zivkov, O. (2006). Corporate governance codes in the European Union: Are they driven by external or domestic forces?. International Journal of Managerial Finance, 2(4), 280–301.

21. Hermes, N., Postma, T. J., & Zivkov, O. (2007). Corporate governance codes and their contents: An analysis of Eastern European codes. Journal for East European Management Studies, 53-74.

22. Hooghiemstra, R., & van Ees, H. (2011). Uniformity as response to soft law: Evidence from compliance and non‐compliance with the Dutch corporate governance code. Regulation & Governance, 5(4), 480-498.

23. Hugill, A. & Siegel, J. I. (2014). Which Does More to Determine the Quality of Corporate Governance in Emerging Economies, Firms or Countries?. Harvard Business School Strategy, 13(55). doi:10.2139/ssrn.2192460

24. Keay, A. (2014). Comply or explain in corporate governance codes: In need of greater regulatory oversight? Legal Studies, 34(2), 279–304.

25. Kirkpatrick, G. (2009). The corporate governance lessons from the financial crisis. OECD Journal: Financial Market Trends, 2009(1), 61-87.

26. 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.

27. Kubíček, A., Štamfestová, P., & Strouhal, J. (2016). Cross-Country Analysis of Corporate Governance Codes in the European Union. Economics and Sociology, 9(2), 319-337.

28. Lau, K. L. A., & Young, A. (2013). Why China Shall Not Completely Transit from a Relation Based to a Rule Based Governance Regime: A Chinese Perspective. Corporate Governance: An International Review, 21(6), 577-585.

29. Lazarides, T., & Drimpetas, E. (2010). Corporate governance regulatory convergence: a remedy for the wrong problem. International Journal of Law and Management, 52(3), 182-192.

30. Mahadeo, J. D., & Soobaroyen, T. (2016). A longitudinal study of the implementation of the corporate governance code in a developing country: The case of Mauritius. Business & Society, 55(5), 738-777.

31. Mallin, C. (2002). Institutional investors and the growth of global influence. Corporate Governance: An International Review, 10(2), 67-68.

32. Marx, A., Backes, C., Meese, E., Lenhof, H. P., & Keller, A. (2016). EDISON-WMW: exact dynamic programing solution of the Wilcoxon–Mann–Whitney test. Genomics, proteomics & bioinformatics, 14(1), 55-61.

33. Nerantzidis, M. (2015). Measuring the quality of the “comply or explain” approach: Evidence from the implementation of the Greek corporate governance code. Managerial Auditing Journal, 30(4/5), 373-412.

34. OECD (2017a). OECD Corporate Governance Factbook 2017. OECD Publishing, Paris.

35. OECD (2017b). OECD Survey of Corporate Governance Frameworks in Asia. OECD Publishing, Paris.

36. OECD (2004). OECD Principles of Corporate Governance 2004. OECD Publishing, Paris.

37. OECD (2015). G20/OECD Principles of Corporate Governance. OECD Publishing, Paris.

38. Okike, E., & Adegbite, E. (2012). The code of corporate governance in Nigeria: Efficiency gains or social legitimation. Corporate Ownership and Control, 95(3), 262-275.

39. Osemeke, L., & Adegbite, E. (2016). Regulatory Multiplicity and Conflict: Towards a Combined Code on Corporate Governance in Nigeria. Journal of Business Ethics, 133. doi: 10.1007/s10551-014-2405-3

40. Reed, A. M. (2002). Corporate governance reforms in India. Journal of Business Ethics, 37(3), 249-268.

41. Reid, A. S. (2003). The internationalisation of corporate governance codes of conduct. Business Law Review, 24(10), 233-238.

42. Shehata, N. F. (2015). Development of corporate governance codes in the GCC: an overview. Corporate Governance, 15(3), 315-338.

43. Sobhan, A. (2016). Where institutional logics of corporate governance collide: Overstatement of compliance in a developing country, Bangladesh. Corporate Governance: An International Review, 24(6), 599-618.

44. Stulz, R. M. (1999). Globalization, corporate finance, and the cost of capital. Journal of applied corporate finance, 12(3), 8-25.

45. Stulz, R. M. (2005). The limits of financial globalization. The Journal of Finance, 60(4), 1595-1638

46. TUAC (2015). The review process of the OECD Principles of Corporate Governance. Paris.

47. Uddin, S., & Choudhury, J. (2008). Rationality, traditionalism and the state of corporate governance mechanisms: Illustrations from a less-developed country. Accounting, Auditing & Accountability Journal, 21(7), 1026-1051.

48. Uddin, S., Jayasinghe, K., & Ahmed, S. (2017). Scandals from an island: Testing Anglo-American corporate governance frameworks. Critical perspectives on international business, 13(4), 349-370.

49. United Nations (2018). World Economic Situation and Prospects 2018, United Nations publication.

50. Wanyama, S., Burton, B., & Helliar, C. (2009). Frameworks underpinning corporate governance: Evidence on Ugandan perceptions. Corporate Governance: An International Review, 17(2), 159-175.

51. Young, M. N., Peng, M. W., Ahlstrom, D., Bruton, G. D., & Jiang, Y. (2008). Corporate governance in emerging economies: A review of the principal–principal perspective. Journal of management studies, 45(1), 196-220.

52. Zattoni, A., & Cuomo, F. (2008). Why adopt codes of good governance? A comparison of institutional and efficiency perspectives. Corporate Governance: An International Review, 16(1), 1-15.