Corporate Governance in Emerging Economies: A Review of the Principal–Principal Perspective

Michael N. Young; Mike W. Peng; David Ahlstrom; Garry D. Bruton; Yi Jiang

doi:10.1111/j.1467-6486.2007.00752.x

journal article Jan 01, 2008

Corporate Governance in Emerging Economies: A Review of the Principal–Principal Perspective

Michael N. Young Mike W. Peng David Ahlstrom Garry D. Bruton Yi Jiang

Journal of Management Studies Vol. 45 No. 1 pp. 196-220 · Wiley

View at Publisher Save 10.1111/j.1467-6486.2007.00752.x

Abstract

abstract Instead of traditional principal–agent conflicts espoused in most research dealing with developed economies, principal–principal conflicts have been identified as a major concern of corporate governance in emerging economies. Principal–principal conflicts between controlling shareholders and minority shareholders result from concentrated ownership, extensive family ownership and control, business group structures, and weak legal protection of minority shareholders. Such principal–principal conflicts alter the dynamics of the corporate governance process and, in turn, require remedies different from those that deal with principal–agent conflicts. This article reviews and synthesizes recent research from strategy, finance, and economics on principal–principal conflicts with an emphasis on their institutional antecedents and organizational consequences. The resulting integration provides a foundation upon which future research can continue to build.

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Details

Published: Jan 01, 2008
Vol/Issue: 45(1)
Pages: 196-220
License: View

Authors

M

Michael N. Young

Division of Cardiology, Dartmouth-Hitchcock Medical Center, Geisel School of Medicine at Dartmouth, Lebanon, New Hampshire

The Chinese University of Hong Kong

Department of Integrative Structural and Computational Biology, The Scripps Research Institute, 10550 North Torrey Pines Road, La Jolla, CA 92037, USA.; Van Andel Research Institute/Shanghai Institute of Materia Medica Center, CAS-Key Laboratory of Receptor Research, Shanghai Institute of Materia Medica, Chinese Academy of Sciences, Shanghai 201203, China.

Cite This Article

Michael N. Young, Mike W. Peng, David Ahlstrom, et al. (2008). Corporate Governance in Emerging Economies: A Review of the Principal–Principal Perspective. Journal of Management Studies, 45(1), 196-220. https://doi.org/10.1111/j.1467-6486.2007.00752.x

Corporate Governance in Emerging Economies: A Review of the Principal–Principal Perspective

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