Corporate Governance in Emerging Economies

Saptarshi Ghosh

The rise of China and India, along with other big emerging economies in Africa, Asia and Latin America, has shifted the focus of future corporate governance research and reforms to the way these economies finance and govern their companies. This course examines in detail the various typologies, systems and models of corporate governance in emerging economies, and identifies the key drivers of corporate governance evolution in these countries. A focus of the course is to look at issues of convergence to and/or divergence from the Anglo-Saxon model of corporate governance and how such issues are reshaping our understanding of the underlying goals and assumptions of future corporate governance research and reforms in these economies.

Some of the larger policy questions that this module will encourage class discussions, debates and presentations on are:

  1. Is there an alternative model to the shareholder maximisation model of corporate governance?
  2. What are the various implications of pursuing competing state-led models of corporate governance?
  3. How can corporate governance models in emerging economies look to improve the diversity of the Boards?
  4. How are the rights of minority shareholders protected in big state-owned firms in emerging economies?
  5. What can emerging economies learn from each other when designing and implementing future corporate governance reforms?

This course critically analyses and examines the evolution of corporate governance primarily in the context of emerging economies structured around three main themes, a) the relationship between corporate governance and capital markets; b) the relationship between corporate governance and the state; and c) the relationship between the various stakeholders in the corporate governance eco-system. The course aims to provide a comprehensive understanding of the roles, obligations, interests, costs and benefits of the various parties/stakeholders in the context of corporate governance in emerging economies. In particular, it critically examines the different ownership structures of firms, and the internal and external corporate governance issues that arise from them. This approach enables important insights into how radical changes in financialisation in big emerging economies like China, India and other big emerging economies in Asia, Africa and Latin America are increasingly driving the interplay between firm structures and corporate governance systems/models.

Previous Knowledge

The course does not require previous knowledge of corporate governance, however it is recommended that students read widely on the above topics. The core textbook that will be used for this course is ‘Corporate Governance: Principles, Policies, and Practices’ by R I (Bob) Tricker, Oxford University Press (2015).

Transferable Knowledge and Skills

  • Understand the nature and history of the evolution of corporate governance and the key drivers in emerging economies
  • Identify key issues and challenges in corporate governance systems and models in emerging economies
  • Critically evaluate and analyse corporate governance architectures and reform strategies in emerging economies
  • Develop in-depth understanding of the internal and external components of corporate governance at firm-level and how they impact on firm performance
  • Undertake original and independent research on key issues related to corporate governance at both firm and systems level in emerging economies