The Political Economy of Corporate Governance in Developing Economies
HAQUE, F., ARUN, TG., & KIRKPATRICK, C. (2011) The political economy of corporate governance in developing economies: The case of Bangladesh. Research in International Business and Finance 25, 169-182.
33 Pages Posted: 19 Sep 2017
Date Written: 2011
The paper investigates the influence of concentrated shareholding, boardroom politics and interest group politics in the quality of corporate governance in listed firms. It finds that the controlling shareholders exert influence in boardroom politics through family-aligned board and executive management. The evidence shows that concentrated ownership, family-aligned board and management, and political connection(s) of the controlling shareholder(s) tend to be inversely associated with the quality of corporate governance in a firm. The findings of the study suggest that the broad-based interest group politics which influence political preference, and corporate control politics contribute significantly to the current state of corporate governance in developing economies.
Keywords: Corporate Governance, Political Economy, Interest Group Politics, Asia, Bangladesh
JEL Classification: G30, K22, K42, L20
Suggested Citation: Suggested Citation