Title: Acceptance of good practices of corporate governance: a case-based model from developing capital markets

Authors: Jean Harris

Addresses: Capital College, The Pennsylvania State University, 777 West Harrisburg Pike, Middletown, Pennsylvania 17057-4898, USA

Abstract: From an analysis of 13 case studies, a model is proposed to explain the acceptance by companies of good practices of corporate governance. Each of the case studies focuses on a company that operates in a developing capital market in Latin America. Each company is recognised as a leader in adopting good practices of corporate governance. Independent variables are strength of demand for capital and for liquidity, moderating variables are strength of internal support and of external support and the dependent variable is degree of acceptance of good practices of corporate governance. In developing capital markets, good practices of corporate governance are central to accounting in the sense of being accountable. The implications of this accountability extend to promoting economic development by attracting investment as well as to demonstrating ethics and social responsibility.

Keywords: good practices; corporate governance; developing markets; capital markets; global business advancement; Brazil; Latin America; minority shareholders; Novo Mercado; economic development; accounting; accountability; foreign direct investment; FDI; transition economies; ethics; social responsibility; globalisation.

DOI: 10.1504/JGBA.2009.023100

Journal for Global Business Advancement, 2009 Vol.2 No.1/2, pp.191 - 206

Published online: 09 Feb 2009 *

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