Journal of Business Ethics 110 (1):45-59 (2012)
The economic globalization process has integrated different competitive markets and pushes firms in different countries to improve their managerial and operational efficiencies. Given the recent empirical evidence for the benefits to firms and stakeholders of good corporate governance (CG) practice, it is expected that good CG practice would be a common strategy for firms in different countries to meet the increasingly intense competition; however, this is not the case. This study examines the differences in CG practices in firms across different countries using the concept of ethical sensitivity. Through the regression analysis of 271 firms in 12 countries and regions, it is found that Hofstede’s cultural dimensions can explain the differences in CG practices. Furthermore, the results demonstrate the influence of culture on ethical sensitivity, which eventually determines the CG practices in different regions.
|Keywords||Ethical sensitivity Corporate governance Cultural dimensions Emerging markets Behavioral finance|
|Categories||categorize this paper)|
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Citations of this work BETA
The Signaling Effect of Corporate Social Responsibility in Emerging Economies.Weichieh Su, Mike W. Peng, Weiqiang Tan & Yan-Leung Cheung - forthcoming - Journal of Business Ethics.
Do Auditing and Reporting Standards Affect Firms’ Ethical Behaviours? The Moderating Role of National Culture.Yasemin Zengin Karaibrahimoglu & Burcu Guneri Cangarli - forthcoming - Journal of Business Ethics.
The Cultural Roots of Ethical Conflicts in Global Business.Carlos J. Sanchez-Runde, Luciara Nardon & Richard M. Steers - 2013 - Journal of Business Ethics 116 (4):689-701.
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