The impact of indigenous culture and business group affiliation on corporate governance of African firms

IF 4.6 3区 管理学 Q1 BUSINESS
Bruce Hearn, Lars Oxelheim, Trond Randøy
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Abstract

Research Question/Issue

This is a study of the relationship between business group ownership and constituent firms' adoption of Anglo-American shareholder value governance in African firms at the undertaking of an initial public offering (IPO).

Research Findings/Insights

We find business group ownership to be associated with lower Anglo-American corporate governance adoption by constituent firms. However, this association is reversed in the institutional context of higher tribalism, while correspondingly being exacerbated in the context of lower tribalism.

Theoretical/Academic Implications

We theorize that the influence of business group ownership on firms' adoption of Anglo-American corporate governance is better understood when considering the institutional context. We highlight how informal cultural institutions are heterogeneous and thus shape the indigenous political economy and impact business groups. Specifically, we argue institutional contexts with higher tribalism are associated with more in-group favoritism and nepotism. This association makes it critical for business group constituent firms to escape the constraints of the political economy of tribalism when attracting outside funding, leading to a higher inclination to adopt Anglo-American governance. Contrastingly, in lower tribalism contexts, there is more universal trust across societies and an increased availability of domestic funding.

Practitioner/Policy Implications

Given the proliferation of business group ownership within economies worldwide, the study provides a useful framework with which to gauge the influence of business group ownership on a constituent firm's adoption of Anglo-American governance best practice. In particular, the study emphasizes that the interdependence of formal institutional architecture and tribalism—both fundamentally associated with the demographic shape and with the incentive structures embedded within the underlying national political economy—calls for careful considerations when making national corporate governance recommendations.

Abstract Image

本土文化和企业集团从属关系对非洲企业公司治理的影响
研究问题/议题 这是一项关于非洲企业在首次公开募股(IPO)时,企业集团所有权与成分公司采用英美股东价值治理之间关系的研究。 研究结果/见解 我们发现,企业集团所有权与成分公司较少采用英美式公司治理有关。然而,在部落主义较高的制度背景下,这种关联会发生逆转,而在部落主义较低的背景下,这种关联会相应加剧。 理论/学术意义 我们认为,如果考虑到制度背景,就能更好地理解企业集团所有权对企业采用英美公司治理的影响。我们强调了非正式文化制度如何具有异质性,从而塑造本土政治经济并影响企业集团。具体而言,我们认为部落主义较高的制度背景与更多的集团内偏袒和裙带关系相关。这种关联使得商业集团的成员公司在吸引外部资金时必须摆脱部落主义政治经济学的限制,从而更倾向于采用英美式治理。相反,在部落主义程度较低的情况下,各社会之间的普遍信任程度更高,国内资金的可获得性也更强。 实践者/政策含义 鉴于企业集团所有权在全球经济中的扩散,本研究提供了一个有用的框架,可用于衡量企业集团所有权对成员公司采用英美治理最佳实践的影响。本研究特别强调,正式制度架构与部落主义之间的相互依存关系--两者在根本上都与人口结构和国家政治经济中的激励结构有关--要求我们在提出国家公司治理建议时加以谨慎考虑。
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来源期刊
CiteScore
7.00
自引率
11.30%
发文量
79
期刊介绍: The mission of Corporate Governance: An International Review is to publish cutting-edge international business research on the phenomena of comparative corporate governance throughout the global economy. Our ultimate goal is a rigorous and relevant global theory of corporate governance. We define corporate governance broadly as the exercise of power over corporate entities so as to increase the value provided to the organization"s various stakeholders, as well as making those stakeholders accountable for acting responsibly with regard to the protection, generation, and distribution of wealth invested in the firm. Because of this broad conceptualization, a wide variety of academic disciplines can contribute to our understanding.
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