Title: Strategic change management: corporate governance failures in India and USA - a tale of two countries
Authors: Siva Prasad Ravi
Addresses: School of Business and Economics, Thompson Rivers University, 900 McGill Road, Kamloops, BC, V2C 0C8, Canada
Abstract: During the last two decades, a series of high-profile enterprise failures at companies like Enron, WorldCom, Tyco in the USA, and Satyam computers of India, have all brought the discussion on corporate governance to the centre stage. The shareholders of Enron and WorldCom in the USA, between them, lost US$ 245 billion due to the monumental frauds committed by their managements. Shareholders of Satyam computers lost crores of rupees in India. Whereas developed countries like the USA have taken effective steps to improve the corporate governance standards and prevent such failures in future, the same thing may not be true for developing countries like India. This paper is a comparative, case based study and analysis of the effectiveness of corporate governance practices in the USA and India. This paper identifies weaknesses of Indian corporate governance practices and recommends strategic change measures necessary for harmonising the Indian corporate governance practices with those of the USA.
Keywords: business enterprises; corporate governance; executives; governance practice; legal framework; shareholders; stakeholders; strategic change management; governance failures; India; United States; USA; management fraud.
International Journal of Strategic Change Management, 2012 Vol.4 No.3/4, pp.281 - 304
Received: 08 May 2021
Accepted: 12 May 2021
Published online: 02 Feb 2013 *