By : Peter Cornelius
Paper prepared for the Third Colloquium of the European
Academy of Business in Society, Gent, September 27-28, 2004.
Nations compete for investment capital, and the assurances investors seek as they decide to provide that capital are universal. Motivated by the growing appetite for a global benchmark of corporate behaviour, this paper examines the relationship between the measured quality of corporate governance at the firm level and national competitiveness. It begins by analyzing the perceived quality of institutions in the 23 largest capital markets. Hypothesizing that good corporate governance at the company level may compensate for perceived weaknesses in the institutional framework, the paper then focuses on the pilot governance index developed by the Financial Times and ISS and compares it with new survey evidence from the World Economic Forum’s Global Competitiveness Report. Finally, the paper discusses corporate governance in the EU accession countries and the extent to which the quality of
governance has affected the mode of entry for foreign investment.
In the broadest sense, corporate governance can be defined as the stewardship
responsibility of corporate directors to provide oversight for the goals and
strategies of a company and to foster their implementation. Corporate governance
may thus be perceived as the set of interlocking rules by . . . .... (baca_selengkapnya )