Corporate governance in emerging economies: A review of the principal-principal perspective: Review paper

Journal of Management Studies

Volumn 45, Issue 1, 2008, Pages 196-220

  Young, Michael N ^a   Peng, Mike W ^b   Ahlstrom, David ^b   Bruton, Garry D ^b   Jiang, Yi ^b  

^a HONG KONG BAPTIST UNIVERSITY   (Hong Kong)

^b NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 34548505921     PISSN: 00222380     EISSN: 14676486     Source Type: Journal    
DOI: 10.1111/j.1467-6486.2007.00752.x     Document Type: Article

References (130)

1. Aguilera, R. V. Jackson, G. (2003 The cross-national diversity of corporate governance: dimensions and determinants Academy of Management Review, 38, 447 65.
2. Ahlstrom, D., Young, M. N., Chan, E. S. Bruton, G. D. (2004 Facing constraints to growth? Overseas Chinese entrepreneurs and traditional business practices in East Asia Asia Pacific Journal of Management, 21, 263 85.
3. Anderson, R. C. Reeb, D. M. (2003 Founding-family ownership and firm performance: evidence from the S&P 500 Journal of Finance, 58, 1301 28.
4. Backman, M. (1999). Asian Eclipse: Exposing the Dark Side of Business in Asia. Singapore : Wiley.
5. Bae, K., Kang, J. Kim, J. (2002 Tunneling or value added? Evidence from mergers by Korean business groups Journal of Finance, 62, 2695 740.
6. Bardhan, P. (2001 Distributive conflicts, collective action, and institutional economics In Meir, G. Stiglitz, J. (Eds Frontiers of Development Economics. New York : Oxford University Press.
7. Barney, J. B. Hansen, M. H. (1994 Trustworthiness as a source of competitive advantage Strategic Management Journal, 15, 175 95.
8. Bautista, L. R. (2002 Ensuring good corporate governance in Asia In Richter, F-J. Mar, P. C. M. (Eds Recreating Asia: Visions for a New Century. Singapore : Wiley.
9. Bennedsen, M. Wolfenzon, D. (2000 The balance of power in closely held corporations Journal of Financial Economics, 58, 113 39.
10. Bertrand, M., Mehta, P. Mullainathan, S. (2002 Ferreting out tunneling: an application to Indian business groups Quarterly Journal of Economics, 117, 121 48.
11. Biggart, N. W. Hamilton, G. (1992 On the limits of a firm-based theory to explain business networks: the Western bias of neoclassical economics In Nohria, N. Eccles, R. (Eds Networks and Organizations. Cambridge, MA : Harvard Business School Press.
12. Bloom, N. Van Reenen, J. (2006). Measuring and Explaining Management Practices Across Firms and Countries. CEP Discussion Paper No 716. Centre for Economic Performance London School of Economics and Political Science, London.
13. Boyer, R. Hollingsworth, J. R. (1997 From national embeddedness to spatial and institutional nestedness In Hollingsworth, J. R. Boyer, R. (Eds Contemporary Capitalism: The Embeddedness of Institutions. Cambridge : Cambridge University Press.
14. Brickley, J. A., Lease, R. C. Smith, C. W. (1988 Ownership structure and voting on antitakeover amendments Journal of Financial Economics, 20, 267 91.
15. Bruton, G. D., Ahlstrom, D. Wan, J. C. C. (2003 Turnaround in East Asian firms: evidence from ethnic overseas Chinese communities Strategic Management Journal, 24, 519 40.
16. Carney, M. (1998 A management capacity constraint? Barriers to the development of the Chinese family business Asia Pacific Journal of Management, 15, 1 25.
17. Carney, M. Gedajlovic, E. (2002 The coupling of ownership and control and the allocation of financial resources: evidence from Hong Kong Journal of Management Studies, 39, 123 46.
18. Chakrabarti, A., Singh, K. Mahmood, I. (2007 Diversification and performance: evidence from East Asian firms Strategic Management Journal, 28, 101 20.
19. Chang, S.-J. (2003 Ownership structure, expropriation, and performance of group-affiliated companies in Korea Academy of Management Journal, 46, 238 54.
20. Chang, S.-J. Hong, J. (2000 Economic performance of group-affiliated companies in Korea: intragroup resource sharing and internal business transactions Academy of Management Journal, 43, 429 88.
21. Chen, H.-L. Huang, Y.-S. (2006 Employee stock ownership and corporate R&D expenditures: evidence from Taiwan's information-technology industry Asia Pacific Journal of Management, 23, 369 84.
22. Chen, M.-J. (2001). Inside Chinese Business. Boston, MA : Harvard Business School Press.
23. Chirinko, R. Elston, J. (2006 Finance, control, and profitability: the influence of German banks Journal of Economic Behavior and Organization, 59, 69 88.
24. Chung, H.-M. (2006 Managerial ties, control, and deregulation: an investigation of business groups entering the deregulated banking industry in Taiwan Asia Pacific Journal of Management, 23, 505 20.
25. Claessens, S., Djankov, S. Lang, L. (2000 The separation of ownership and control in East Asian corporations Journal of Financial Economics, 58, 81 112.
26. Claessens, S., Djankov, S., Fan, J. Lang, L. (2002 Disentangling the incentive and entrenchment effects of large shareholdings Journal of Finance, 57, 2741 71.
27. Cuervo-Cazurra, A. (2006 Business groups and their types Asia Pacific Journal of Management, 23, 407 18.
28. Daily C. M. Dalton, D. R. (1992 Financial performance of founder-managed versus profession-ally managed small corporations Journal of Small Business Management, 30, 25 34.
29. Davis, G. F. Useem, M. (2002 Top management, company directors and corporate control In Pettigrew, A., Thomas, H. Whittington, R. (Eds Handbook of Strategy and Management. London : Sage.
30. Demsetz, H. Lehn, K. (1985 The structure of corporate ownership: causes and consequences Journal of Political Economy, 93, 1155 77.
31. Dess, G. G. Beard, D. W. (1984 Dimensions of organizational task environments Administrative Science Quarterly, 29, 52 73.
32. Dewatripont, M. Tirole, J. (1994 A theory of debt and equity: diversity of securities and manager-shareholder congruence Quarterly Journal of Economics, 109, 1027 54.
33. Dharwadkar, R., George, G. Brandes, P. (2000 Privatization in emerging economies: an agency theory perspective Academy of Management Review, 25, 650 69.
34. Dieleman, M. Sachs, W. (2006 Oscillating between a relationship-based and a market-based model: the Salim Group Asia Pacific Journal of Management, 23, 521 36.
35. Djankov, S. Murrell, P. (2002 Enterprise restructuring in transition: a quantitative survey Journal of Economic Literature, 40, 739 92.
36. Doidge, C., Karolyi, G. A. Stulz, R. (2004 Why are foreign firms listed in the US worth more? Journal of Financial Economics, 71, 205 38.
37. Ericson, R. E. (1998 Restructuring in transition: conception and measurement Comparative Economic Studies, 40, 103 8.
38. Faccio, M., Lang, L. Young, L. (2001 Dividends and expropriation American Economic Review, 91, 54 78.
39. Fama, E. Jensen, M. (1983 Separation of ownership and control Journal of Law and Economics, 26, 301 25.
40. Feldman, M. S. Rafaeli, A. (2002 Organizational routines as sources of connections and understandings Journal of Management Studies, 39, 309 31.
41. Ferris, S., Kim, K. Kitsabunnarat, P. (2003 The costs (and benefits?) of diversified business groups: the case of Korean chaebols Journal of Banking and Finance, 27, 251 73.
42. Filatotchev, I., Kapelyushnikov, R., Dyomina, N. Aukutsionek, S. (2001 The effects of ownership concentration on investment and performance in privatized firms in Russia Managerial and Decision Economics, 22, 299 313.
43. Filatotchev, I., Wright, M., Uhlenbruck, K., Tihanyi, L. Hoskisson, R. E. (2003 Governance, organizational capabilities, and restructuring in transition economies Journal of World Business, 38, 331 47.
44. Filatotchev, I., Lien, Y. Piesse, J. (2005 Corporate governance and performance in publicly listed, family-controlled firms: evidence from Taiwan Asia Pacific Journal of Management, 22, 257 83.
45. Fukuyama, F. (1992). The End of History and the Last Man. New York : Free Press.
46. Fukuyama, F. (1995). Trust. New York : Free Press.
47. Gedajlovic, E. R., Lubatkin, M. H. Schulze, W. S. (2004 Crossing the threshold from founder management to professional management: a governance perspective Journal of Management Studies, 41, 988 12.
48. Ghemawat, P. Khanna, T. (1998 The nature of diversified business groups: a research design and two case studies Journal of Industrial Economics, 46, 35 61.
49. Gomes, A. (2000 Going public without governance: managerial reputation effects Journal of Finance, 55, 615 46.
50. Gomez-Mejia, L., Nunez-Nickel, M. Gutierrez, I. (2001 The role of family ties in agency contracts Academy of Management Journal, 44, 81 95.
51. Grossman, S. Hart, O. (1986 The costs and benefits of ownership: a theory of vertical and lateral integration Journal of Political Economy, 94, 691 719.
52. Groves, T., Hong, Y., McMillan, J. Naughton, B. (1995 China's evolving managerial labor market Journal of Political Economy, 103, 873 92.
53. Guillen, M. F. (2000a Business groups in emerging economies: a resource-based view Academy of Management Journal, 43, 362 80.
54. Guillen, M. F. (2000b Corporate governance and globalization: is there convergence across countries? Advances in International Comparative Management, 13, 175 204.
55. Guillen, M. (2001). The Limits of Convergence: Globalization and Organizational Change in Argentina, South Korea, and Spain. Princeton, NJ : Princeton University Press.
56. Habbershon, T. Williams, M. (1999 A resource-based framework for assessing the strategic advantages of family firms Family Business Review, 12, 1 25.
57. Hamilton, G. G. Biggart, N. W. (1988 Market, culture and authority: a comparative analysis of management in the Far East American Journal of Sociology, 94, S52 94.
58. Hart, O. Moore, J. (1995 Debt and seniority: an analysis of the role of hard claims in constraining management American Economic Review, 85, 567 85.
59. He, Y., Tian, Z. Chen, Y. (2007 Performance implications of nonmarket strategy in China Asia Pacific Journal of Management, 24, 151 69.
60. Hill, C. W. L. (1995 National institutional structures, transaction cost economizing and competitive advantage: the case of Japan Organization Science, 6, 119 31.
61. Holmstrom, B. Tirole, J. (1993 Market liquidity and performance monitoring Journal of Political Economy, 101, 678 709.
62. Hoskisson, R. E., Eden, L., Lau, C. M. Wright, M. (2000 Strategy in emerging economies Academy of Management Journal, 43, 249 67.
63. Huntington, S. (1996). The Clash of Civilizations and the Remaking of World Order. New York : Simon and Schuster.
64. Isobe, T., Makino, S. Goerzen, A. (2006 Japanese horizontal keiretsu and the performance implications of membership Asia Pacific Journal of Management, 23, 453 66.
65. Jensen, M. C. (1993 The modern industrial revolution, exit, and the failure of internal control systems Journal of Finance, 48, 831 80.
66. Jensen, M. C. Meckling, W. (1976 Theory of the firm: managerial behavior, agency costs, and ownership structure Journal of Financial Economics, 3, 305 50.
67. Joh, S. (2003 Corporate governance and firm profitability: evidence from Korea before the economic crisis Journal of Financial Economics, 68, 287 322.
68. Johnson, S., Boone, P., Breach, A. Friedman, E. (2000a Corporate governance in the Asian financial crisis Journal of Financial Economics, 58, 141 86.
69. Johnson, S., La Porta, R., Lopez-de-Silanes, F. Shleifer A. (2000b Tunneling American Economic Review, 90, 22 7.
70. Khanna, T. Palepu, K. (2000a Emerging market business groups, foreign intermediaries, and corporate governance In Morck, R. (Ed Concentrated Corporate Ownership. Chicago, IL : University of Chicago Press, 265 92.
71. Khanna, T. Palepu, K. (2000b The future of business groups in emerging markets: long-run evidence from Chile Academy of Management Journal, 43, 268 85.
72. Khanna, T. Rivkin, J. (2001 Estimating the performance effects of business groups in emerging markets Strategic Management Journal, 22, 45 74.
73. Kochhar, R. David, P. (1996 Institutional investors and firm innovation: a test of competing hypotheses Strategic Management Journal, 17, 73 84.
74. La Porta, R., Lopez-de-Silanes, F. Shleifer, A. (1997 Legal determinants of external finance Journal of Finance, 52, 1131 50.
75. La Porta, R., Lopez-de-Silanes, F., Shleifer, A. Vishny, R. (1998 Law and finance Journal of Political Economy, 106, 1113 55.
76. La Porta, R., Lopez-de-Silanes, F. Shleifer, A. (1999 Corporate ownership around the world Journal of Finance, 54, 471 517.
77. La Porta, R., Lopez-de-Silanes, F., Shleifer, A. Vishny, R. (2000 Investor protection and corporate governance Journal of Financial Economics, 58, 3 27.
78. La Porta, R., Lopez-de-Silanes, F., Shleifer, A. Vishny, R. (2002 Investor protection and corporate valuation Journal of Finance, 57, 1147 70.
79. Li, M., Ramaswamy, K. Petitt, B. (2006 Business groups, market failures: a focus on vertical and horizontal settings Asia Pacific Journal of Management, 23, 439 52.
80. Lins, K. V. (2003 Equity ownership and firm value in emerging markets Journal of Financial and Quantitative Analysis, 38, 159 84.
81. Liu, Y., Ahlstrom, D. Yeh, K. S. (2006 The separation of ownership and management in Taiwan's public companies: an empirical study International Business Review, 15, 415 35.
82. Lubatkin, M. H., Lane, P. J., Collin S. Very, P. (2005a An embeddedness framing of governance and opportunism: towards a cross-nationally accommodating theory of agency Journal of Organizational Behavior, 27, 1 16.
83. Lubatkin, M. H., Schulze, W. S., Ling, Y. Dino, R. D. (2005b The effects of parental altruism on the governance of family-managed firms Journal of Organizational Behavior, 26, 313 30.
84. McCarthy, D. Puffer, S. (2003 Corporate governance in Russia Journal of World Business, 38, 397 415.
85. Meyer, K. E. Peng, M. W. (2005 Probing theoretically into Central and Eastern Europe: transactions, resources, and institutions Journal of International Business Studies, 36, 600 21.
86. Mitton, T. (2002 A cross-firm analysis of the impact of corporate governance on the East Asian financial crisis Journal of Financial Economics, 64, 215 41.
87. Monks, R. Minnow, N. (2001). Corporate Governance, 2nd edition. Cambridge, MA : Blackwell.
88. Morck, R., Yeung, B. Yu, B. W. (2000 The information content of stock markets: why do emerging markets have synchronous stock price movements? Journal of Financial Economics, 58, 215 60.
89. Morck, R., Wolfenzon, D. Yeung, B. (2005 Corporate governance, economic entrenchment, and growth Journal of Economic Literature, 63, 655 720.
90. Mursitama, T. N. (2006 Creating relational rents: the effect of business group affiliated firms' performance in Indonesia Asia Pacific Journal of Management, 23, 537 58.
91. North, D. C. (1990). Institutions, Institutional Change and Economic Performance. New York : Norton.
92. North, D. C. (1994 Economic performance through time American Economic Review, 84, 359 68.
93. North, D. C. (2005). Understanding the Process of Economic Change. Princeton, NJ : Princeton University Press.
94. Peng, M. W. (2003 Institutional transitions and strategic choices Academy of Management Review, 28, 275 96.
95. Peng, M. W. (2004 Outside directors and firm performance during institutional transitions Strategic Management Journal, 25, 453 71.
96. Peng, M. W. (2006). Global Strategy. Cincinnati, OH : Thomson South-Western.
97. Peng, M. W. Delios, A. (2006 What determines the scope of the firm over time and around the world? An Asia Pacific perspective Asia Pacific Journal of Management, 23, 385 406.
98. Peng, M. W. Heath, P. (1996 The growth of the firm in planned economies in transition: institutions, organizations, and strategic choice Academy of Management Review, 21, 492 528.
99. Peng, M. W. Zhou, J. Q. (2005 How network strategies and institutional transitions evolve in Asia Asia Pacific Journal of Management, 22, 321 36.
100. Peng, M. W., Buck, T. Filatotchev, I. (2003 Do outside directors and new managers help improve firm performance? An exploratory study in Russian privatization Journal of World Business, 38, 348 60.
101. Peng, M. W., Lee, S.-H. Wang, D. (2005 What determines the scope of the firm over time? A focus on institutional relatedness Academy of Management Review, 30, 622 33.
102. Powell, W. W. (1991 Expanding the scope of institutional analysis In Powell, W. W. DiMaggio, P. J. (Eds The New Institutionalism in Organizational Analysis. Chicago, IL : University of Chicago Press, 183 203.
103. Reese, W. Weisbach, M. (2002 Protection of minority shareholder interests, cross-listings in the United States, and subsequent equity offerings Journal of Financial Economics, 66, 65 104.
104. Redding, S. G. (1990). The Spirit of Chinese Capitalism. New York : De Gruyter.
105. Rediker, K. Seth, A. (1995 Boards of directors and substitution effects of alternative governance mechanisms Strategic Management Journal, 16, 85 99.
106. Rubach, M. J. Sebora, T. C. (1998 Comparative corporate governance: competitive implications of an emerging convergence Journal of World Business, 33, 167 84.
107. Schulze, W. S., Lubatkin, M. H., Dino, R. Buchholtz, A. K. (2001 Agency relationships in family firms: theory and evidence Organization Science, 12, 99 116.
108. Schulze, W. S., Lubatkin, M. H. Dino, R. (2003 Toward a theory of agency and altruism in family firms Journal of Business Venturing, 18, 473 90.
109. Scott, R. W. (1995). Institutions and Organizations. Thousand Oaks, CA : Sage.
110. Shleifer, A. Vishny, R. (1997 A survey of corporate governance Journal of Finance, 52, 737 83.
111. Skaperdas, S. (1992 Cooperation, conflict, and power in the absence of property rights American Economic Review, 82, 720 39.
112. Spicer, A., McDermott, G. A. Kogut, B. (2000 Entrepreneurship and privatization in Central Europe Academy of Management Review, 25, 630 49.
113. Suhomlinova, O. (2006 Towards a model of organizational co-evolution in transition economies Journal of Management Studies, 43, 1537 54.
114. Tihanyi, L., Johnson, R., Hoskisson, R. Hitt, M. (2003 Institutional ownership differences and international diversification: the effects of boards of directors and technological opportunity Academy of Management Journal, 46, 195 211.
115. Tsui, A. L. (2004 The professionally managed family-ruled enterprise: ethnic Chinese business in Singapore Journal of Management Studies, 41, 693 723.
116. Uhlenbruck, K., Meyer, K. Hitt, M. (2003 Organizational transformation in transition economies: resource-based and organizational learning perspectives Journal of Management Studies, 40, 257 8.
117. Wan, W. P. (2005 Country resource environments, firm capabilities, and corporate diversification strategies Journal of Management Studies, 42, 161 82.
118. Whitley, R. D. (1992). Business Systems in East Asia: Firms, Markets and Societies. London : Sage.
119. Wilkinson, B. (1996 Culture, institutions and business in East Asia Organization Studies, 17, 421 47.
120. Williamson, O. E. (1985). The Economic Institutions of Capitalism. New York : Free Press.
121. Woodruff, D. M. (1999). Money Unmade: Barter and the Fate of Russian Capitalism. Ithaca, NY : Cornell University Press.
122. Wright, M. (1999 Discussion of Hungarian privatization strategy and financial performance of privatized companies Journal of Business Finance & Accounting, 26, 1359 68.
123. Wright, M., Filatotchev, I., Hoskisson, R. Peng, M. W. (2005 Strategy research in emerging economies: challenging the conventional wisdom Journal of Management Studies, 42, 1 33.
124. Wurgler, J. (2000 Financial markets and the allocation of capital Journal of Financial Economics, 58, 187 214.
125. Yeung, H. (2006 Change and continuity in Southeast Asian Chinese business Asia Pacific Journal of Management, 23, 229 54.
126. Yiu, D., Bruton, G. D. Lu, Y. (2005 Understanding business group performance in an emerging economy: acquiring resources and capabilities in order to prosper Journal of Management Studies, 42, 183 206.
127. Young, M. N., Ahlstrom, D., Bruton, G. D. Chan, E. (2001 The resource dependence, service, and control functions of boards of directors in Hong Kong and Taiwanese firms Asia Pacific Journal of Management, 18, 233 43.
128. Young, M. N., Ahlstrom, D. Bruton, G. D. (2004 The globalization of corporate governance in East Asia: the transnational solution Management International Review, 44, Special Issue, 31 50.
129. Zahra, S. Filatotchev, I. (2004 Governance of the entrepreneurial threshold firm: a knowledge-based perspective Journal of Management Studies, 41, 885 97.
130. Zhao, Z., Anand, J. Mitchell, W. (2005 A dual networks perspective on inter-organizational transfer of R&D capabilities: international joint ventures in the Chinese automotive industry Journal of Management Studies, 42, 127 60.