Norms in International Corporate Governance: A Review
NISM Working Paper Series, Working Paper 01/2016
10 Pages Posted: 19 Apr 2016
Date Written: April 18, 2016
The consequences of unethical practices of firms have resulted in financial meltdowns affecting entire economies all over the world. This has incentivised regulators to think of novel approaches to incentivise ethical conduct of firms. Corporate governance and inducing ethical climate by policy are the two ideas that have regulated the conduct of firms. This paper attempts a review of international norms of corporate governance. Though there are three mainstream ideas about regulatory frameworks called principle based, rule based and hybrid approaches, concerns regarding design and enforcement like externality and inducement of favourable human behaviour remain.
Keywords: Corporate governance, Ethical climate, Behavioural finance, Regulation
JEL Classification: G34, G38, G39
Suggested Citation: Suggested Citation