Breaking down the impenetrable wall: What are the barriers to good corporate governance practices above all?
Good corporate governance practices are essential in every organisation to ensure accountability and due diligence enhancing corporate value. However, some countries face barriers to good corporate governance practices such as poor regulatory frameworks, perceived constraints, and threats from external factors, etc. Therefore, the organisations will face consequences such as eroding shareholder confidence, declining market value and the organisation integrity. Hence, the study’s main objective is to systematically review the barriers to good corporate governance practice in the global context. This study uses a systematic literature review whereby the authors analyse 24 selected articles. Therefore, the main findings indicated ten barriers to good corporate governance practices. The ten barriers are weak regulatory framework, perceived constraints, poor quality of information, external business factors, lack of awareness, confusion of authority, lack of monitoring, board diversity, transparency and investor protection. These findings provide significant contributions in theoretical development for potential scholars and practical implications for organisations, stakeholders, investors, and corporate leaders who aim to strengthen the governance framework, improve organisational resilience and promote sustainable value creation to understand these barriers comprehensively.
Authors
- Roshidah Safeei (ORCID: https://orcid.org/0000-0001-7873-466X)
- Abd Hadi Mustaffa (ORCID: https://orcid.org/0000-0003-1919-2009)
- Nor Adilla Tajarahim
- Norfarah Syahirah Mohd Fadzilah
Institutions
- Management and Science University (MY)
- Universiti Teknologi MARA (MY)
- Tunku Abdul Rahman University of Management and Technology (MY)
- Universiti Tunku Abdul Rahman (MY)
Publication Details
- Journal
- International Journal of Applied Economics Finance and Accounting
- Published
- 2024-10-18
- DOI
- https://doi.org/10.33094/ijaefa.v20i1.1928
- Primary Topic
- State Capitalism and Financial Governance
- Type
- article
- Field-Weighted Citation Impact
- 0.00