The Substance of Good Corporate Governance: an Interpretative Analysis of Corporate Governance Quality and its Metrics

digital

Article

Magazine

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI

Fascicle

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2018 - 3

Title

The Substance of Good Corporate Governance: an Interpretative Analysis of Corporate Governance Quality and its Metrics

Authors

Paloma Bilbao, Alberto Redondo

Publisher

Vita e Pensiero

Format

Article |

Pdf

Online from

02-2019

Doi

10.26350/000518_000015

Issn

0035-676X (print) | 1827-7918 (digital)

€ 6.00

Ebook format Pdf readable on these devices:

Computer
with Software:
- Adobe PDF Reader
Android
iPhone/Ipad
with App:
- Adobe PDF Reader
E-Book Reader
Ibs Tolino
Kobo

Description

Despite the increasing number of studies on corporate governance, the study of what is understood as ‘‘good’’ corporate governance and how this ‘‘quality’’ is measured has not been extensively approached; thus, what constitutes good corporate governance remains unsolved. To examine the substance of corporate governance quality, we undertake an interpretative analysis of this concept. We conclude that the deep meaning of corporate governance quality is anchored to the theoretical lens adopted to approach it and that agency theory represents the mainstream method employed in this task. Our results question the validity of agency-based metrics of corporate governance for the two following reasons: the endogeneity problem they embed and the agency Universalist approach that does not capture the holistic complexity of corporate governance at a firm level. To tackle such limitations, we propose the behavioural approach to fully capture the substance of what makes ‘good’ corporate governance and to measure it.