ISSN: 2222-6990
Open access
The primary aim of this paper is to provide a systematic review of literature on corporate governance and cultural diversity. The systematic review is conducted using qualitative and quantitative articles published in Scopus and web of science. This study is being undertaken in the recent period, i.e., 2016 to 2020. The initial sample comprised 247 papers from Scopus and web and science. After the screening, the sample thus obtained includes 45 studies for the analysis. The result highlights that the cultural diversity of the board is an essential component for improving governance. The fruits of cultural diversity can be obtained in multiple ways; therefore, management of the company and the managers need to be particularly careful while diversifying their corporate boards. Furthermore, the results show that culture is equally important for developed, developing, and emerging economies.
Ahmad, S., & Omar, R. (2016), "Basic corporate governance models: a systematic review", International Journal of Law and Management, Vol. 58 No. 1, pp. 73-107.
Ali, M., & Azmi, W. (2016). Religion in the boardroom and its impact on Islamic banks' performance. Review of Financial Economics, 31, 83-88.
Almaqtari, F. A., Al-Hattami, H. M., Al-Nuzaili, K. M., & Al-Bukhrani, M. A. (2020). Corporate governance in India: A systematic review and synthesis for future research. Cogent Business & Management, 7(1), 1803579.
Al-Qahtani, M., & Elgharbawy, A. (2020). The effect of board diversity on disclosure and management of greenhouse gas information: evidence from the United Kingdom. Journal of Enterprise Information Management.
Arnaboldi, F., Casu, B., Kalotychou, E., & Sarkisyan, A. (2020). The performance effects of board heterogeneity: what works for EU banks?. The European Journal of Finance, 26(10), 897-924.
Bindabel, W. (2020). M&A Open Innovation, and Its Obstacle: A Case Study on GCC Region. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 138.
Boateng, A., Wang, Y., Ntim, C., & Glaister, K. W. (2020). National culture, corporate governance and corruption: A cross?country analysis. International Journal of Finance & Economics.
Del Brio, E. B., Hernández-Maestro, R. M., & Yoshikawa, T. (2018). How does interpersonal justice affect outside directors' governance behavior? A cross-cultural comparison. Review of Managerial Science, 12(3), 683-709.
Dolfsma, W., & McCarthy, K. (2018). The emergence and performance of the Chinese merger market and the impact of partner location. Journal of Chinese Economic and Business Studies, 16(1), 39-58.
Duong, H. K., Kang, H., & Salter, S. B. (2016). National culture and corporate governance. Journal of International Accounting Research, 15(3), 67-96.
Feng, M., Kang, T., & Nabar, S. (2017). National societal values and corporate governance. International Journal of Emerging Markets.
Fernández-Temprano, M. A., & Tejerina-Gaite, F. (2020). Types of director, board diversity and firm performance. Corporate Governance: The International Journal of Business in Society.
Griffin, D. W., Guedhami, O., Kwok, C. C., Li, K., & Shao, L. (2017). National culture and the value implication of corporate governance. Available at SSRN 2400078.
Griffin, D., Guedhami, O., Kwok, C. C., Li, K., & Shao, L. (2017). National culture: The missing country-level determinant of corporate governance. Journal of International Business Studies, 48(6), 740-762.
Gyapong, E., Monem, R. M., & Hu, F. (2016). Do women and ethnic minority directors influence firm value? Evidence from post?apartheid South Africa. Journal of Business Finance & Accounting, 43(3-4), 370-413.
Humphries, S. A., & Whelan, C. (2017). National culture and corporate governance codes. Corporate Governance: The International Journal of Business in Society.
Ismail, A. M., Ahmadi, S. M., Yatim, N., & Ismail, P. M. (2020). The impact of board characteristics on co-operative reputation from the lense of resource-based view theory (RBVT). International Journal of Financial Research, 11(3), 43-61.
Jiang, W., Lin, B., Liu, Y., & Xu, Y. (2019). Chairperson collectivism and the compensation gap between managers and employees: Evidence from China. Corporate Governance: An International Review, 27(4), 261-282.
Khan, S. N., Hussain, R. I., Maqbool, M. Q., Ali, E. I. E., & Numan, M. (2019). The mediating role of innovation between corporate governance and organizational performance: Moderating role of innovative culture in Pakistan textile sector. Cogent Business & Management.
Kim, J., & Daniel, S. J. (2016). Religion and corporate governance: Evidence from 32 countries. Asia?Pacific Journal of Financial Studies, 45(2), 281-308.
Li, J., Zhang, Y., Chen, S., Jiang, W., Wen, S., & Hu, Y. (2018). Demographic diversity on boards and employer/employee relationship. Employee Relations.
Lobrij, M. F., Kaptein, M., & Lückerath-Rovers, M. (2020). What national governance codes say about corporate culture. Corporate Governance: The International Journal of Business in Society.
López-Quesada, E., & Idowu, S. O. (2018). Corporate governance practices and comprehensive income. Corporate Governance: The international journal of business in society.
Mirza, N. I., Malik, Q. A., & Mahmood, C. K. (2020). The value of board diversity in the relationship of corporate governance and investment decisions of pakistani firms. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 146.
Nakpodia, F., & Adegbite, E. (2018). Corporate governance and elites. In Accounting Forum, Vol. 42, No. 1, pp. 17-31
Nalukenge, I., Nkundabanyanga, S. K., & Ntayi, J. M. (2018). Corporate governance, ethics, internal controls and compliance with IFRS. Journal of Financial Reporting and Accounting.
Nasir, N. A. B. M., Ali, M. J., & Ahmed, K. (2019). Corporate governance, board ethnicity and financial statement fraud: evidence from Malaysia. Accounting Research Journal.
Ntongho, R. A. (2016). Culture and corporate governance convergence. International Journal of Law and Management.
Nurunnabi, M. (2017). Does cultural value affect board efficacy? Insights on international corporate governance. International Journal of Law and Management.
Ortas, E., & Gallego-Álvarez, I. (2020). Bridging the gap between corporate social responsibility performance and tax aggressiveness. Accounting, Auditing & Accountability Journal.
Osemeke, N., & Osemeke, L. (2017). The effect of culture on corporate governance practices in Nigeria. International Journal of Disclosure and Governance, 14(4), 318-340.
Park, S. H., & Zhang, Y. (2020). Cultural entrepreneurship in corporate governance practice diffusion: framing of "independent directors" by US-listed chinese companies. Organization Science, 31(6), 1359-1384.
Rafinda, A., Rafinda, A., Witiastuti, R. S., Suroso, A., & Trinugroho, I. (2018). BOARD DIVERSITY, RISK AND SUSTAINABILITY OF BANK PERFORMANCE: EVIDENCE FROM INDIA. Journal of Security & Sustainability Issues, 7(4).
Vazquez, P., Carrera, A., & Cornejo, M. (2020). Corporate governance in the largest family firms in Latin America. Cross Cultural & Strategic Management.
Wang, L., Zhang, Y., Wang, L., & Fu, J. (2020). Confucianism and Firm Performance. Front. Phys. 8: 319. doi: 10.3389/fphy.
Yeung, J. C. (2018). Nonlinear effect of board size on corporate performance: impact of the cultural backgrounds of directors in Hong Kong. Asia?Pacific Journal of Financial Studies, 47(1), 107-131.
In-Text Citation: (Majeed et al., 2021)
To Cite this Article: Majeed, A., Basiruddin, R., & Binsaddig, R. (2021). Corporate Governance and Culture: A Systematic Review. International Journal of Academic Research in Business and Social Sciences, 11(11), 789 – 799.
Copyright: © 2021 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode