Abstract
This paper addresses how the global activities undertaken by multinational enterprises (MNEs) in international settings impact corporate governance mechanisms and accountability systems. International corporate governance and accountability research, whether from a political science, economics, finance, or accounting perspective, has thus far predominantly focused on the comparison of corporate governance schemes in different countries and on the investigation of institutional parameters that determine these schemes. Straying from this line of inquiry, this article discusses how globalization at the firm level affects governance and accountability systems at parent- and subsidiary-levels. It emphasizes how an MNE's globalization attributes such as globalization scale, foreign adaptation, global competition, and international experience influence the design of governance mechanisms such as board size, board composition, executive compensation, market discipline, interlocking directorate, ownership concentration, duality and inbreeding, as well as the design of accountability systems such as accounting information, auditing standards, and financial and non-financial disclosures. This article bases its conjectures on information processing and agency theories.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 19-41 |
| Number of pages | 23 |
| Journal | Journal of International Management |
| Volume | 11 |
| Issue number | 1 SPEC. ISS. |
| DOIs | |
| State | Published - Mar 2005 |
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Keywords
- Corporate accountability
- Corporate governance
- Globalization
- MNEs
ASJC Scopus subject areas
- Business and International Management
- Strategy and Management
- Finance
Cite this
How does globalization affect corporate governance and accountability? A perspective from MNEs. / Luo, Yadong.
In: Journal of International Management, Vol. 11, No. 1 SPEC. ISS., 03.2005, p. 19-41.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - How does globalization affect corporate governance and accountability? A perspective from MNEs
AU - Luo, Yadong
PY - 2005/3
Y1 - 2005/3
N2 - This paper addresses how the global activities undertaken by multinational enterprises (MNEs) in international settings impact corporate governance mechanisms and accountability systems. International corporate governance and accountability research, whether from a political science, economics, finance, or accounting perspective, has thus far predominantly focused on the comparison of corporate governance schemes in different countries and on the investigation of institutional parameters that determine these schemes. Straying from this line of inquiry, this article discusses how globalization at the firm level affects governance and accountability systems at parent- and subsidiary-levels. It emphasizes how an MNE's globalization attributes such as globalization scale, foreign adaptation, global competition, and international experience influence the design of governance mechanisms such as board size, board composition, executive compensation, market discipline, interlocking directorate, ownership concentration, duality and inbreeding, as well as the design of accountability systems such as accounting information, auditing standards, and financial and non-financial disclosures. This article bases its conjectures on information processing and agency theories.
AB - This paper addresses how the global activities undertaken by multinational enterprises (MNEs) in international settings impact corporate governance mechanisms and accountability systems. International corporate governance and accountability research, whether from a political science, economics, finance, or accounting perspective, has thus far predominantly focused on the comparison of corporate governance schemes in different countries and on the investigation of institutional parameters that determine these schemes. Straying from this line of inquiry, this article discusses how globalization at the firm level affects governance and accountability systems at parent- and subsidiary-levels. It emphasizes how an MNE's globalization attributes such as globalization scale, foreign adaptation, global competition, and international experience influence the design of governance mechanisms such as board size, board composition, executive compensation, market discipline, interlocking directorate, ownership concentration, duality and inbreeding, as well as the design of accountability systems such as accounting information, auditing standards, and financial and non-financial disclosures. This article bases its conjectures on information processing and agency theories.
KW - Corporate accountability
KW - Corporate governance
KW - Globalization
KW - MNEs
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U2 - 10.1016/j.intman.2004.11.003
DO - 10.1016/j.intman.2004.11.003
M3 - Article
VL - 11
SP - 19
EP - 41
JO - Journal of International Management
JF - Journal of International Management
SN - 1075-4253
IS - 1 SPEC. ISS.
ER -