Are you keen on keeping up to date on the latest research in corporate governance? Don’t have time for pages of needlessly pretentious verbiage? Then this is the series for you. In Research Recap, Directorpoint gives boards of directors the need-to-knows on corporate governance hot off the presses of the leading industry journals. Just tell people you read the full thing; we’re not snitchin’.
Academy of Management Review
Corporate Governance Deviance
Empirical: Conclusions are supported by data gathered through structured experimentation.
Theoretical: No hard numbers. Conclusions are drawn using logic supported by existing research.
Because the concept of deviancy in corporate governance practices is under-researched, this paper was devoted to connecting the dots in the logic of existing studies and expanding on that logic wherever possible. The goal was to identify the following…
- Why do firms deviate from the national “standards” in governance logic and practices?
- When does that deviance occur (what are the precursors)?
- How does that deviancy manifest itself?
Deviancy in corporate governance practices occurs when an organization’s entrepreneurial identity falls far enough outside the nationally-accepted standards that to conform would require a drastic recalibration of that identity. That entrepreneurial identity plays a crucial role in dictating the level of discretion an organization applies towards determining whether or not it chooses to deviate (or remain deviant).
How much a firm’s governance practices ultimately deviate from the norm is determined by “the extent of national regulatory enforcement” and the organization’s capacity affect changes in its own governance.
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61 minutes, 43 seconds
Estimated reading time of our article = 1 minute, 12 seconds.
Estimated reading time of the research = 62 minutes, 55 seconds
In 61 minutes, 43 seconds you could…
- Complete a daily beginner’s course in Japanese on your phone.
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Aguilera, R. V., Judge, W. Q., & Terjesen, S. A. (2018). Corporate Governance Deviance. Academy of Management Review, 43(1), 87–109. https://doi.org/10.5465/amr.2014.0394