Table A2.

National Business Systems

National Business SystemExamples of countriesNature of the corporate governance mechanism
Liberal market economies (LMEs)United States of America, United Kingdom, Australia, Canada, Ireland and New ZealandCorporate governance norms are guided by agency theory and shareholder value maximisation
Coordinated market economies (CMEs)Austria, Belgium, Denmark, Finland, the Netherlands, Norway, Sweden and SwitzerlandGreater focus on value maximisation for multiple stakeholders, influencing how firms perceive corporate governance
Highly coordinatedeconomiesJapanGeneral prevalence of insider-dominated governance structures
European peripheral economiesFrance, Greece, Italy, Portugal, Spain, Czech Republic, Hungary, Poland, Romania and SlovakiaModerately strong corporate governance norms
Advanced emerging economiesChile, Turkey, Israel, South Africa, Korea and TaiwanWell-defined corporate governance norms
Advanced city economiesHong Kong and SingaporeSuperior corporate governance norms
Arab oil-based economiesKuwait, Qatar, Saudi Arabia and the United Arab EmiratesPoor to average corporate governance norms
Emerging economiesAlgeria, Argentina, Bangladesh, Brazil, China, Colombia, Egypt, India, Indonesia, Kazakhstan, Malaysia, Mexico, Morocco, Nigeria, Pakistan, Peru, Philippines, Russia, Thailand, Ukraine and VietnamPoor corporate governance norms
Socialist economiesCuba and VenezuelaVery weak corporate governance norms
Source(s):Witt et al., 2017; Zaman et al., 2020 

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