Corporate Governance in a Developing Economy: Issues of Choosing the Right Approach (Rules or Principles)

By

ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends and family for the support they provided me and their belief in me as well as guidance they provided without which I would have never been able to do this research.

DECLARATION

I, (Your name), would like to declare that all contents included in this dissertation stand for my individual work without any aid, and this dissertation has not been submitted for any examination at academic as well as professional level, previously. It is also representing my very own views and not essentially those that are associated with the university.

Signed __________________ Date _________________

TABLE OF CONTENTS

ACKNOWLEDGEMENT II

DECLARATION III

TABLE OF CONTENTS IV

CHAPTER 1: INTRODUCTION 1

Outline of the Study1

Background1

Research Aim and Objectives2

Research Questions2

CHAPTER 2: LITERATURE REVIEW 4

What is Corporate Governance?4

The role of social interest groups (stakeholders) in corporate governance9

Basic characteristics of corporate governance10

Circle of stakeholders11

Theoretical context13

Common Features of Disclosure Of Information Necessary for the Good of the Company:16

Access to Information16

The Corporate Governance: Between Business and Management Shareholders17

Other Forces18

Financial19

Background of Corporate Governance19

Corporate governance functions21

The Importance of Corporate Governance23

Reasons Why Corporate Governance Has Received More Attention Lately25

Challenges Faced by Developing Countries, Emerging Markets, and Transition Economies28

Characterizing Principles and Rules29

Importance of corporate governance30

The four principles of corporate governance31

The four points of interest in corporate governance31

Compliance with laws and regulations32

Corporate governance framework32

Designs of the Corporate Governance34

Principles of Corporate Governance35

Systems of corporate governance36

Success Effects of Corporate Governance37

Main Effects of Good Corporate Governance38

CHAPTER 3: METHODOLOGY 42

Introduction42

Philosophical Framework or Paradigm43

Rationale for a Qualitative Study47

Research Design48

Literature Search48

Keywords49

Research Method49

Literature Selection Criteria50

Search Technique50

Theoretical Framework50

Methodology50

Researcher Bias51

Sample52

Data Collection and Processing Procedures53

Data Analysis Procedures56

Quality and Verification57

Reliability/Dependability58

Validity60

Ethical Considerations62

CHAPTER 4: DISCUSSION AND ANALYSIS 63

Purposes of the Corporate Governance66

Corporate Interest as Guiding Principle67

CHAPTER 5: CONCLUSION 69

REFERENCES 71

CHAPTER 1: INTRODUCTION

Outline of the Study

This research concentrates on the several facets of corporate governance and incorporates the following chapters:

Introduction

Literature Review

Methodology

Discussion and Analysis

Conclusion

Background

A huge debate is raging the world of governance these days as to how the level of trust can be improved in our communities in regards to the governance bodies of companies, aboriginal communities, charitable corporations, and so on. While there are many debates that are presently in progress, the most important ones are playing out in global communities, with other companies taking lead from there.

Though these debates might seem a little off topic from the daily governance responsibilities, it actually is not. By understanding the different point of views and underlying rationales can help the board of directors to develop practices and policies that improve the governance of their organization and thus improve community's trust in the organizations leadership. In this study we assess the issues that organizations face while choosing the right kind of corporate governance approach (i.e. rules-based or principles based approach).

Research Aim and Objectives

The aim of this research is to identify the issues of choosing the right corporate governance approach in developing economy. The two approaches that are under consideration are Rule-base and Principle-based corporate governance ...