Corporate Governance Rules in Six Stock Exchanges: A Comparative Study
DOI:
https://doi.org/10.14738/assrj.22.937Keywords:
corporate governance, governance rules, stock exchange, corporate value.Abstract
This paper aims to compare the corporate governance rules around the world and to ascertain which Stock Exchange SE is more adherent to our proposed corporate governance framework. The SE researched were Tokyo TSE, New York NYSE, Frankfurt Stock Exchange, Brazil BM&FBovespa, London Stock Exchange and Toronto TSX. Several governance models or frameworks extracted from the literature were analyzed, however the integration across these studies showed extremely difficult. This lead us to build our own “proxy” framework composed of 15 rules. TSX has the lowest corporate governance standard compared to other five SE because its document does not provide description in 12 rules out of 15, while London has the highest corporate governance standard with detailed description in 11 rules. As more and more companies do business around the world with their counterparts and governments, it becomes increasingly important to understand the similarities and differences between the corporate governance rules and practices in some Stock Exchange around the world.
References
REFERENCES
. Reaz, M., Hossain, M.(2007). Corporate governance around the world: an investigation. The Journal of American Academy of Business, 11 (2), 169-175.
. Oman, C., Fries, S., Buiter, W. (2003). Corporate governance in developing, transition and emerging–market economies. OECD Development Centre.
. IFC (International Finance Corporation) (2014). htttp://www.ifc.org/wps /wcm/connect/topics_ext_content/ifc_external_corporate_site/corporate+governance/overview/why+corporate+governance.
. IBGC (Instituto Brasileiro de Governança Corporativa). (2010). Code of best practice of corporate governance.
. OECD The Organisation for Economic Co-operation and Development (2014). https://www1.oecd.org/daf/ca/2014-review-oecd-corporate-governance-principles.htm.
. Gillan, S. L. (2006). Recent developments in corporate governance: an overview. Journal of Corporate Finance, 12 (3), 381– 402. http://dx.doi.org/10.1016/j.jcorpfin.2005.11.002
. Malacrida, M. J. C., Yamamoto, M. C. (2006). Corporate governance: information disclosure level and its relation with the stock price volatility on ibovespa. R. Cont. Fin., USP, 65 – 79.
. Becht, M., Bolton, P., Röell, A. (2003). Handbook of the Economics of Finance, 1. Elsevier, 1-109.
. Gregory, H. J. (2002). Comparative matrix of corporate governance codes relevant to the European Union and its member states. Weil, Gotshal & Manges LLP
. FRC (Financial Reporting Council). (2012). https://www.frc.org.uk/Our-Work/Publications/CorporateGovernance /UK-Corporate-Governance-Code-September-2012.aspx.
. Klapper, F. L., Love, I. (2004). Corporate governance, investor protection, and performance in emerging markets. Journal of Corporate Finance, 10 (5), 703-728. http://dx.doi.org/10.1016/S0929-1199(03)00046-4
. Claessens, S., Laeven, L. (2002). Financial development, property rights, and growth. The World Bank Financial Sector Strategy and Policy Department. http://dx.doi.org/10.1596/1813-9450-2924
. La Porta, R., Silanes, F. L, Shleifer, A., Vishny, R. (2000). Investor protection and corporate governance. Journal of Financial Economics, 58, 3-27. http://dx.doi.org/10.1016/S0304-405X(00)00065-9
. Gompers, P. A., Ishii, J. L., Metrick, A. (2003). Corporate governance and equity prices. Quarterly Journal of Economics, 118 (1), 107-155. http://dx.doi.org/10.1162/00335530360535162
. K. H. Chung, J. Elder, J. C. Kim, “Corporate governance and liquidity,” unpublished.
. Larcker, D. F., Richardson, F. A., Tuna, I. (2005) How important is corporate governance?. The Wharton School. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=595821
. Bebchuk, L. A., Cohen, A., Ferrell, A. (2009). What matters in corporate governance? Review of Financial Studies, 22 (2) 783-827. http://dx.doi.org/10.1093/rfs/hhn099
. BM&FBOVESPA, (2011). Regulamento de listagem Novo Mercado. http://www.bmfbovespa.com.br/empresas/download/Regulamento NMercado.pdf.
. New York Stock Exchange. (2014). 303A.00 Corporate governance standards. http://nysemanual.nyse.com/LCMTools/PlatformViewer. asp?selectednode=chp_1_4_3&manual=%2Flcm%2Fsections%2Flcm-sections%2F.
. German Government Commission. (2014). German code of corporate governance. http://www.dcgk.de//files/dcgk/usercontent/en/ download/code/E-CorpGov_2014.pdf.
. Tokyo Stock Exchange. (2013). TSE-Listed companies white paper on corporate governance. http://www.tse.or.jp/rules/cg/white-paper/b7gje60000005ob1-att/b7gje6000003ukm8.pdf.
. Financial Reporting Council. (2014). UK Corporate Governance Code. https://www.frc.org.uk/Our-Work/Codes-Standards/Corporate-governance/UK-Corporate-Governance-Code.aspx
. Ontario Securities Commission. Disclosure of Corporate Governance Practices. http://www.osc.gov.on.ca/documents/en/Securities-Category5/20141211_58-101_amd-governance-practices.pdf
. Dempsey, T. (2012). Corporate governance for main market and aim companies. London Stock Exchange. http://www.londonstock exchange.com/companies-and-advisors/aim/publications/documents/corpgov.pdf.
Downloads
Published
How to Cite
Issue
Section
License
Authors wishing to include figures, tables, or text passages that have already been published elsewhere are required to obtain permission from the copyright owner(s) for both the print and online format and to include evidence that such permission has been granted when submitting their papers. Any material received without such evidence will be assumed to originate from the authors.