Title: Collibration as an alternative regulatory mechanism to govern the disclosure of director and executive remuneration in Australia
Authors: Zahid Riaz; Sangeeta Ray; Pradeep Kanta Ray
Addresses: Faculty of Business Administration, Lahore School of Economics, Lahore, Pakistan; School of Management, UNSW School of Business, UNSW, Sydney, 2052, Australia ' Discipline of International Business, The University of Sydney Business School, The University of Sydney, Sydney, 2006, Australia; School of Computing and Information Technology, University of Wollongong, Wollongong, New South Wales, 2522, Australia ' School of Management, UNSW School of Business, UNSW, Sydney, 2052, Australia
Abstract: This paper explores an alternative approach to regulation for addressing corporate governance problems related to director and executive remuneration disclosure. We draw on the concept of collibration, conceived by Dunsire as an approach to managing tensions between opposing forces in social arena. We explore the application of collibration in the development of a regulatory framework, composed of a mix of state regulation and self-regulation, for corporate governance in Australia. Thereafter, we examine the impact of the mixed regulation developed through collibration on remuneration disclosure behaviour in Australian companies. We find that improvement in corporate disclosure is primarily driven by the establishment of remuneration committees and appointment of reputable auditors. Our research demonstrates the effectiveness of collibration in developing a regulatory framework that aligns state regulation designed to protect shareholder interests with self-regulation, about which little was known in the literature.
Keywords: corporate governance; collibration; remuneration disclosure; director remuneration; executive remuneration; mixed regulation; Australia; state regulation; self-regulation; corporate disclosure; remuneration committees; reputable auditors.
International Journal of Corporate Governance, 2015 Vol.6 No.2/3/4, pp.241 - 274
Received: 23 Dec 2014
Accepted: 29 Jun 2015
Published online: 12 Feb 2016 *