IDEAS home Printed from https://ideas.repec.org/a/pdc/jrnbeh/v14y2018i4p913-925.html
   My bibliography  Save this article

Efficiency as a new ideology of trust-building corporate governance

Author

Listed:
  • Brychko, Maryna
  • Semenog, Andrii

Abstract

This paper seeks to examine the mainstream theories of corporate governance in an attempt to suggest that efficient corporate governance has no logical claim to “objectivity” and not always contribute to trust-building. Therefore, efficiency as the corporate governance goal is political and ideological plan of actions based on a set of controversial conceptual and empirical assumptions, which constitute norms and prescriptions. In addition, mechanisms of how these ideologies are supported and reproduced are shown. The paper provides the basis and seeks to persuade policymakers and commentators for new interdisciplinary research into the behavioral and political economy of corporate governance.

Suggested Citation

  • Brychko, Maryna & Semenog, Andrii, 2018. "Efficiency as a new ideology of trust-building corporate governance," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(4), pages 913-925, September.
    • Handle: RePEc:pdc:jrnbeh:v:14:y:2018:i:4:p:913-925
    DOI: http://dx.doi.org/10.15208/beh.2018.62
    as

    Download full text from publisher

    File URL: https://academicpublishingplatforms.com/downloads/pdfs/beh/volume33/201809261921_62_BEH_2018_Vol14_Issue4_Maryna-Brychko_et_al_Efficiency_ideology_trust_building_913-925.pdf
    Download Restriction: no
    File URL: https://academicpublishingplatforms.com/article.php?journal=BEH&number=33&article=2574
    Download Restriction: no
    File URL: https://libkey.io/http://dx.doi.org/10.15208/beh.2018.62?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Renee B. Adams & Benjamin E. Hermalin & Michael S. Weisbach, 2010. "The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey," Journal of Economic Literature, American Economic Association, vol. 48(1), pages 58-107, March.
    2. Lars Oxelheim & Trond Randøy, 2005. "The Anglo-American financial influence on CEO compensation in non-Anglo-American firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(4), pages 470-483, July.
    3. Bromley, Daniel W., 1990. "The ideology of efficiency: Searching for a theory of policy analysis," Journal of Environmental Economics and Management, Elsevier, vol. 19(1), pages 86-107, July.
    4. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    5. Alexander Dyck & Natalya Volchkova & Luigi Zingales, 2008. "The Corporate Governance Role of the Media: Evidence from Russia," Journal of Finance, American Finance Association, vol. 63(3), pages 1093-1135, June.
    6. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    7. Rafael La Porta & Florencio Lopez‐de‐Silanes & Andrei Shleifer & Robert W. Vishny, 2000. "Agency Problems and Dividend Policies around the World," Journal of Finance, American Finance Association, vol. 55(1), pages 1-33, February.
    8. Lorenzo Sacconi & Giacomo Degli Antoni (ed.), 2011. "Social Capital, Corporate Social Responsibility, Economic Behaviour and Performance," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-30618-9, December.
    9. Norma L. Nielson & Anne E. Kleffner & Ryan B. Lee, 2005. "The Evolution of the Role of Risk Communication in Effective Risk Management," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 8(2), pages 279-289, September.
    10. Fauver, Larry & Fuerst, Michael E., 2006. "Does good corporate governance include employee representation? Evidence from German corporate boards," Journal of Financial Economics, Elsevier, vol. 82(3), pages 673-710, December.
    11. Mark Anson & Ted White & Ho Ho, 2004. "Good corporate governance works: More evidence from CalPERS," Journal of Asset Management, Palgrave Macmillan, vol. 5(3), pages 149-156, October.
    12. Power, Michael, 2009. "The risk management of nothing," Accounting, Organizations and Society, Elsevier, vol. 34(6-7), pages 849-855, August.
    13. Ran Barniv & Mark J. Myring & Wayne B. Thomas, 2005. "The Association between the Legal and Financial Reporting Environments and Forecast Performance of Individual Analysts," Contemporary Accounting Research, John Wiley & Sons, vol. 22(4), pages 727-758, December.
    14. Karl V. Lins & Henri Servaes & Ane Tamayo, 2017. "Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis," Journal of Finance, American Finance Association, vol. 72(4), pages 1785-1824, August.
    15. James D. Westphal & David L. Deephouse, 2011. "Avoiding Bad Press: Interpersonal Influence in Relations Between CEOs and Journalists and the Consequences for Press Reporting About Firms and Their Leadership," Organization Science, INFORMS, vol. 22(4), pages 1061-1086, August.
    16. Sven‐Olof Collin, 1998. "Why are these Islands of Conscious Power Found in the Ocean of Ownership? Institutional and Governance Hypotheses Explaining the Existence of Business Groups in Sweden," Journal of Management Studies, Wiley Blackwell, vol. 35(6), pages 719-746, November.
    17. James Nelson, 2005. "Does good corporate governance really work? More evidence from CalPERS," Journal of Asset Management, Palgrave Macmillan, vol. 6(4), pages 274-287, December.
    18. Mark H. Lang & Karl V. Lins & Darius P. Miller, 2004. "Concentrated Control, Analyst Following, and Valuation: Do Analysts Matter Most When Investors Are Protected Least?," Journal of Accounting Research, Wiley Blackwell, vol. 42(3), pages 589-623, June.
    19. Maug, Ernst, 1997. "Boards of directors and capital structure: Alternative forms of corporate restructuring," Journal of Corporate Finance, Elsevier, vol. 3(2), pages 113-139, April.
    20. Gauri Bhat & Ole‐Kristian Hope & Tony Kang, 2006. "Does corporate governance transparency affect the accuracy of analyst forecasts?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 46(5), pages 715-732, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anna VORONTSOVA & Tetiana VASYLIEVA. & Yuriy BILAN & Grzegorz OSTASZ & Tetyana MAYBORODA, 2020. "The Influence Of State Regulation Of Education For Achieving The Sustainable Development Goals: Case Study Of Central And Eastern European Countries," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2020(34), pages 6-26, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hüttenbrink, Alexander & Oehmichen, Jana & Rapp, Marc Steffen & Wolff, Michael, 2014. "Pay-for-performance – Does one size fit all? A multi-country study of Europe and the United States," International Business Review, Elsevier, vol. 23(6), pages 1179-1192.
    2. Ormazabal, Gaizka, 2018. "The Role of Stakeholders in Corporate Governance: A View from Accounting Research," CEPR Discussion Papers 12775, C.E.P.R. Discussion Papers.
    3. Fuxiu Jiang & Kenneth A Kim, 2020. "Corporate Governance in China: A Survey [The role of boards of directors in corporate governance: a conceptual framework and survey]," Review of Finance, European Finance Association, vol. 24(4), pages 733-772.
    4. Pathak, Jagdish & Sun, Jerry, 2013. "Does investor protection regime affect the effectiveness of outside directorship on the board?," Journal of Multinational Financial Management, Elsevier, vol. 23(1), pages 19-33.
    5. Schmid, Thomas & Ampenberger, Markus & Kaserer, Christoph & Achleitner, Ann-Kristin, 2010. "Controlling shareholders and payout policy: do founding families have a special 'taste for dividends'?," CEFS Working Paper Series 2010-01, Technische Universität München (TUM), Center for Entrepreneurial and Financial Studies (CEFS).
    6. Ding, Wenzhi & Levine, Ross & Lin, Chen & Xie, Wensi, 2021. "Corporate immunity to the COVID-19 pandemic," Journal of Financial Economics, Elsevier, vol. 141(2), pages 802-830.
    7. Ahmed Bouteska & Mehdi Mili, 2022. "Does corporate governance affect financial analysts’ stock recommendations, target prices accuracy and earnings forecast characteristics? An empirical investigation of US companies," Empirical Economics, Springer, vol. 63(4), pages 2125-2171, October.
    8. Christopher Koch & Ola Nilsson & Katarina Eriksson, 2014. "Does shareholder protection affect the performance of analysts as a gatekeeper?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 18(2), pages 315-345, May.
    9. Ola Nilsson, 2018. "The relationship between shareholder protection through regulation and the demand for external auditor services," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 15(3), pages 162-175, August.
    10. Jong†Hag Choi & T. J. Wong, 2007. "Auditors' Governance Functions and Legal Environments: An International Investigation," Contemporary Accounting Research, John Wiley & Sons, vol. 24(1), pages 13-46, March.
    11. Yu, Minna, 2010. "Analyst forecast properties, analyst following and governance disclosures: A global perspective," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 19(1), pages 1-15.
    12. Andriosopoulos, Dimitris & Panetsidou, Styliani, 2021. "A global analysis of Private Investments in Public Equity," Journal of Corporate Finance, Elsevier, vol. 69(C).
    13. Ferrell, Allen & Liang, Hao & Renneboog, Luc, 2016. "Socially responsible firms," Journal of Financial Economics, Elsevier, vol. 122(3), pages 585-606.
    14. Nenova, Tatiana, 2003. "The value of corporate voting rights and control: A cross-country analysis," Journal of Financial Economics, Elsevier, vol. 68(3), pages 325-351, June.
    15. Burkart, Mike & Panunzi, Fausto, 2006. "Agency conflicts, ownership concentration, and legal shareholder protection," Journal of Financial Intermediation, Elsevier, vol. 15(1), pages 1-31, January.
    16. Reena Aggarwal & Isil Erel & René Stulz & Rohan Williamson, 2010. "Differences in Governance Practices between U.S. and Foreign Firms: Measurement, Causes, and Consequences," The Review of Financial Studies, Society for Financial Studies, vol. 23(3), pages 3131-3169, March.
    17. Randall Morck, 2011. "Finance and Governance in Developing Economies," Annual Review of Financial Economics, Annual Reviews, vol. 3(1), pages 375-406, December.
    18. Hans B. Christensen & Luzi Hail & Christian Leuz, 2021. "Mandatory CSR and sustainability reporting: economic analysis and literature review," Review of Accounting Studies, Springer, vol. 26(3), pages 1176-1248, September.
    19. Kim, Euysung, 2006. "The impact of family ownership and capital structures on productivity performance of Korean manufacturing firms: Corporate governance and the "chaebol problem"," Journal of the Japanese and International Economies, Elsevier, vol. 20(2), pages 209-233, June.
    20. Yang, Shuai & Wu, Chao, 2021. "Do Chinese managers listen to the media?: Evidence from mergers and acquisitions," Research in International Business and Finance, Elsevier, vol. 58(C).

    More about this item

    Keywords

    Corporate governance; good corporate governance; trust-building strategy; efficiency; shareholder value; ideology; objective truth rule;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pdc:jrnbeh:v:14:y:2018:i:4:p:913-925. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jaroslav Holecek (email available below). General contact details of provider: https://edirc.repec.org/data/pradecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.