The authors studied panel data for corporate governance ratings in 50 countries between 1997 and 2005 to understand what the country-level predictors of corporate governance legitimacy might be. Using neo-institutional theory, they found that all three pillars of institutionalization influenced perceptions of corporate governance at the national level—specifically, (a) the greater the extent of law and order, (b) the more the culture emphasized global competitiveness, and (c) the less the prevalence of corruption, the higher the corporate governance legitimacy within a nation. This study refines and extends the comparative corporate governance literature, as well as the neo-institutional perspective.
Aguilera, R., & Jackson, G.2003. The cross-national diversity of corporate governance: Dimensions and determinants. Academy of Management Review , 28: 447-465.
2.
Aidis, R.2005. Institutional barriers to small- and medium-sized enterprise operations in transition countries, Small Business Economics , 25(4): 305-318.
3.
Andres, P., Valentin, A., & Lopez, F.2005. Corporate boards in OECD countries: Size, composition, functioning and effectiveness. Corporate Governance: An International Review, 13: 197-209.
4.
Backer, L.2007. Engaging stakeholders in corporate environmental governance . Business and Society Review, 112: 29-40.
5.
Buchanon, J.2007. Japanese corporate governance and the principle of "internalism ." Corporate Governance: An International Review, 15: 27-35.
6.
Buck, T.2003. Modern Russian corporate governance: Convergent forces or product of Russia's history? Journal of World Business , 38: 299-315.
7.
Coglianese, C.2007. Legitimacy and corporate governance. Delaware Journal of Corporate Law, 21: 159-179.
8.
Cohen, J.1968. Multiple regression as a general data-analytic system . Psychological Bulletin, 70: 426-443.
9.
Cornelius, P.2005. Good corporate practices in poor corporate governance systems: Some evidence from the global competitiveness report. Corporate Governance, 5(3): 12-24.
10.
Crossland, C., & Hambrick, D.2007. How national systems differ in their constraints on corporate executives: A study of CEO effects in three countries. Strategic Management Journal, 28: 767-787.
11.
Dacin, M., Goodstein, J., & Scott, W.R.2002. Institutional theory and institutional change: Introduction to the special research forum. Academy of Management Journal , 45(1): 45-57.
12.
Davis, G.2005. New directions in corporate governance. Annual Review of Sociology, 31(1): 143-162.
13.
Deeg, R., & Perez, S.2000. International capital mobility and domestic institutions: Corporate finance and governance in Europe. Governance, 13(2): 119-152.
14.
Denis, D., & McConnell, J.2003. International corporate governance. Journal of Financial and Quantitative Analysis, 38(1): 1-36.
15.
Doige, C., Karolyi, G., & Stultz, R.2004. Why do countries matter so much for corporate governance? (Working Paper No. 10726). Cambridge, MA: National Bureau of Economic Research .
16.
Erb, C., Harvey, C., & Viskanta, T.1996, November/December. Political risk, economic risk, and financial risk. Financial Analysts Journal, 29-46.
17.
Estrin, S.2002. Competition and corporate governance in transition. Journal of Economic Perspectives, 16: 101-125.
18.
Ezeala-Harrison, F.2005. On the competing notions of international competitiveness . Advances in Competitiveness Research, 13(1): 80-88.
19.
Florini, A.2003. Business and global governance. Brookings Review, 21(2): 4-9.
20.
French, M., & Jarrett, P.1994. The United States: Restoring productivity growth. OECD Observer, 185: 46-49.
21.
Gold, D., & Dienhart, J.W.2007. Business ethics in the corporate governance era: Domestic and international trends in transparency, regulation, and corporate governance. Business & Society Review, 112: 163-183.
22.
Gomez, P., & Korine, H.2005. Democracy and the evolution of corporate governance. Corporate Governance: An International Review, 13: 739-752.
23.
Groenewegen, J.2004. Who should control the corporation? Insights from new and original institutional economics. Journal of Economic Issues, 38: 353-362.
24.
Haddock, F.2004. Bitten by the corporate governance bug. Global Finance, 18(2): 34-36.
25.
Hartley, J., Butler, M., & Benington, J.2002. Local government modernization: UK and comparative analysis from an organizational perspective. Public Management Review , 4(3): 387-404.
26.
Ho, C.K.2005. Corporate governance and corporate competitiveness: An international analysis. Corporate Governance, 13: 211-223.
27.
Hoskisson, R., Yiu, D., & Kim, H.2004. Corporate governance systems: Effects of capital and labor market congruency on corporate innovation and global competitiveness. Journal of High Technology Management, 15: 293-307.
Jackson, G., & Moerke, A.2005. Continuity and change in corporate governance: Comparing Germany and Japan. Corporate Governance: An International Review, 13: 351-363.
30.
Jacoby, S.2007. Principles and agents: CalPERS and corporate governance in Japan. Corporate Governance: An International Review, 15: 5-15.
31.
Kazakevitch, G., & Smyth, R.2005. Gradualism versus shock therapy: (Re)Interpreting the Chinese and Russian experiences. Asia Pacific Business Review , 11: 69-79.
32.
Keenan, J.2004. Corporate governance in UK/USA. Corporate Governance: An International Review, 12: 172-180. Khatri, N., Tsang, E., & Begley, T.2006. Cronyism: A cross-cultural analysis. Journal of International Business Studies, 37: 61-81.
33.
Kostova, T., & Zaheer, S.1999. Organizational legitimacy under conditions of complexity: The case of the multinational enterprise. Academy of Management Review, 24: 64-81.
34.
Kraatz, M., & Zajac, E.2001. How organizational resources affect strategic change and performance in turbulent environments: Theory and evidence. Organization Science, 12(5): 632-657.
35.
Kshetri, N., & Dholakia, N.2005. E-commerce patterns in south Asia: A look beyond economics . Journal of Asia-Pacific Business, 6: 63-79.
36.
La Porta, R., Lopez-de-Silanes, F., & Shleifer, A.1999. Corporate ownership around the world. Journal of Finance, 54: 471-519.
37.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R.1997. Trust in large organizations. American Economic Review, 87: 333-338.
38.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R.2000. Investor protection and corporate governance. Journal of Financial Economics, 58(1/2): 3-27.
39.
Leaders: The pause after Parmalat. 2004. Economist , 370: 13.
40.
Li, D., Moshirian, F., Pham, P., & Zein, J.2006. When financial institutions are large shareholders: The role of macro corporate governance environments. Journal of Finance, 61: 2975-2996.
41.
Li, S., & Filer, L.2007. The effects of the governance environment on the choice of investment mode and the strategic implications. Journal of World Business, 42: 80-101.
42.
Liu, Q.2006. Corporate governance in China: Current practices, economic effects and institutional determinants. CESifo Economic Studies , 52: 415-453.
43.
Meyer, J., & Rowan, B.1977. Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83: 340-363.
44.
Millar, C., Eldomiaty, T., Choi, C., & Hilton, B.2005. Corporate governance in institutional transparency in emerging markets. Journal of Business Ethics, 59: 163-174.
45.
Mizruchi, M., & Fein, L.1999. The social construction of organizational knowledge: A study of the uses of coercive, mimetic, and normative isomorphism. Administrative Science Quarterly, 44(4): 653-683.
46.
Monks, R.2001. Redesigning corporate governance structures and systems for the twenty-first century. Corporate Governance: An International Review, 9: 142-147.
47.
Monks, R.2007. Two challenges for fiduciary capitalism. Corporate Governance: An International Review, 15: 486-493.
48.
Morin, M.2005. Labour law and new forms of corporate organization. International Labor Review, 144(1): 5-31.
49.
Nagar, V.2004. Discussion of investor protection and corporate governance: Evidence from worldwide CEO turnover. Journal of Accounting Research, 42: 313-327.
50.
Neilsen, E., & Rao, M.V.H.1987. The strategy-legitimacy nexus: A thick description. Academy of Management Review, 12: 523-534.
51.
Nenova, T.2003. The value of corporate voting rights and control: A cross-country analysis. Journal of Financial Economics, 68: 325-345.
52.
Ng, D.2006. The impact of corruption on financial markets. Managerial Finance, 32: 822-832.
53.
North, D.1990. Institutions, institutional change, and economic performance . Cambridge, UK: Cambridge University Press.
54.
Oyeshile, O.2004. Communal values, cultural identity, and challenge of development in contemporary Africa. Journal of Social, Political and Economic Studies, 29: 291-304.
55.
Palazzo, G., & Scherer, A.2006. Corporate legitimacy as deliberation: A communicative framework. Journal of Business Ethics, 66: 71-88.
56.
Porter, M.E.1990. The competitive advantage of nations. New York: Free Press.
57.
A premium for good governance?2002. McKinsey Quarterly3: 20-23.
58.
PRS Group. (2006) International country risk guide. East Syracuse, NY: Author.
59.
Rachami, J.2003. Institutionalized corruption: An instrument of governance in the Middle East and North Africa?Washington, DC: Center for International Private Enterprise. Retrieved April 6, 2008, from http://www.cipe.org/pdf/publications/fs/rachami.pdf
60.
Randall, R.1999. Corruption in world's economy is targeted. Strategic Finance, 81:18-19.
61.
Roberts, P.W., & Greenwood, R.1997. Integrating transaction cost and institutional theories: Toward a constrained-efficiency framework for understanding organizational design adoption. Academy of Management Review, 22: 346-373.
62.
Rodriguez, P., Uhlenbruck, K., & Eden, L.2005. Government corruption and the entry strategies of multinationals . Academy of Management Review, 30: 383-405.
63.
Rose-Ackerman, S.1997. The political economy of corruption. In K. A. Elliot (Ed.), Corruption in the global economy: 31-60. Washington, DC: Institute for International Economics.
64.
Rossouw, G.2005. Business ethics and corporate governance: A global survey . Business and Society. 44: 32-40.
65.
Sarkar, J., & Sarkar, S.2000. Large shareholder activism in corporate governance in developing countries: Evidence from India. International Review of Finance, 1(3): 161-194.
66.
Schneper, W., & Guillen, M.2004. Stakeholder rights and corporate governance: A cross-national study of hostile takeovers. Administrative Science Quarterly , 49: 263-295.
67.
Scott, W.R.1995. Institutions and organizations. Thousand Oaks, CA: Sage.
68.
Scott, W.R.2003. Institutional carriers: Reviewing modes of transporting ideas over time and space and considering their consequences. Industrial and Corporate Change, 12: 879-894.
69.
Spira, L.1999. Ceremonies of governance: Perspectives on the role of audit committees. Journal of Management and Governance, 3: 231-260.
70.
Stanfield, J., & Carroll, M.2004. Governance and the legitimacy of corporate power: A path for convergence of heterodox economics? Journal of Economic Issues, 38: 363-370.
71.
Stiglitz, J. (1999). Quis custodiet ipsos custodes? Challenge, 42: 26-67.
72.
Suchman, M.1995. Managing legitimacy: Strategic and institutional approaches . Academy of Management Review, 20(3): 571-610.
73.
Treisman, D.2000. The causes of corruption: A cross national study. Journal of Public Economics, 76: 399-457. Turnbull, S.1997. Corporate governance: Its scope, concerns and theories. Corporate Governance: An International Review, 5(4), 180-206.
74.
Uhlenbruck, K., Rodriguez, P., Doh, J., & Eden, L.2006. The impact of corruption on entry strategy: Evidence from telecommunication projects in emerging economies. Organization Science, 17: 402-417.
75.
Warren, R.2003. The evolution of business legitimacy. European Business Review, 15(3): 153-163.
76.
Weiland, J.2005. Corporate governance, values management and standards: AEuropean perspective. Business and Society, 44: 74-93.
77.
Wicks, D.2001. Institutionalized mindsets of invulnerability: Differentiated institutional fields and the antecedents of organizational crisis. Organization Studies, 22: 659-692.
78.
Witherell, W.2000. Corporate governance: A basic foundation for global economy . OECD Observer, 221/222: 24-28.
79.
Wilson, I.2004. The agenda for redefining corporate purpose: Five key executive actions. Strategy & Leadership, 32(1): 21-27.
80.
Wooldridge, J.2002. Econometric analysis of cross section and panel data. Cambridge, MA: MIT Press.
81.
Wright, C., & Rwabizambuga, A.2006. Institutional pressures, corporate reputation, and voluntary codes of conduct: An examination of the equator principles. Business & Society, 111: 89-118.
82.
Wu, X.2005. Corporate governance and corruption: A cross-country analysis. Governance: An International Journal of Policy, Administration, and Institutions, 18(2): 151-170.
