Mechanisms of corporate governance going international: Testing its performance effects in the Swedish economy, 2004
2013 (English)In: Baltic Journal of Management, ISSN 1746-5265, Vol. 8, no 1, 79-101 p.Article in journal (Refereed) PublishedText
Globalisation includes international product markets and capital, but also involves internationalisation of corporate governance mechanisms. We propose that internationalisation of governance mechanisms is related to improved performance of the corporation. For example, listing at several stock markets implies pressure to improve information flow and stronger adherence to international standards, which will reduce possibility for slack. Recruiting top managers and board members from an international arena will, among other things, enlarge the market for managerial labour and the market for board members, presumably putting more pressure on present managers and board members, and increase the probability of finding an adequate new manager or new board members. An integrated EU would support the internationalisation of the mechanisms through reducing the transaction costs of Europeanization. An initial test on a sample of listed Swedish corporations indicates that the proposition could be rejected. Two main reasons can be found as an interpretation of the results 1.) that mechanisms with governance functions, such as capital structure and the board have several functions, and that the governance function is not always the most important one, and 2.) that governance mechanisms cannot be analysed in isolation, since they are included in a coherent corporate governance strategy.
Place, publisher, year, edition, pages
2013. Vol. 8, no 1, 79-101 p.
internationalisation, corporate governance, governance strategy
IdentifiersURN: urn:nbn:se:liu:diva-126724OAI: oai:DiVA.org:liu-126724DiVA: diva2:916447