Codes of Good Governance Worldwide: What is the Trigger?

Organization Studies, Vol. 25, No. 3, 2004

29 Pages Posted: 20 Sep 2004

See all articles by Alvaro Cuervo-Cazurra

Alvaro Cuervo-Cazurra

Northeastern University - Department of International Business and Strategy

Ruth V. Aguilera

Northeastern University - Department of International Business and Strategy

Abstract

This paper examines why and how corporate governance practices are implemented across countries. We look at the worldwide development and adoption of codes of good governance, a set of best practice recommendations regarding the behavior and structure of the board of directors. We find that codes of good governance serve to compensate for deficiencies in the legal system covering shareholders' rights. The results also show that size of capital markets, degree of government intervention, and percentage of foreign investors in the stock market are predictors of the existence of codes of corporate governance, while country openness has no significant effect.

Keywords: corporate governance, boards of directors, legal system, international practices.

Suggested Citation

Cuervo-Cazurra, Alvaro and Aguilera, Ruth V., Codes of Good Governance Worldwide: What is the Trigger?. Organization Studies, Vol. 25, No. 3, 2004. Available at SSRN: https://ssrn.com/abstract=260869

Alvaro Cuervo-Cazurra

Northeastern University - Department of International Business and Strategy ( email )

D'Amore-McKim School of Business
313 Hayden Hall, 360 Huntington Avenue
Boston, MA 02115
United States
16173736568 (Phone)
16173738628 (Fax)

HOME PAGE: http://cuervo-cazurra.com

Ruth V. Aguilera (Contact Author)

Northeastern University - Department of International Business and Strategy ( email )

Boston, MA 02115
United States

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