Corporate governance in emerging economies: A review of the principal-principal perspective: Review paper

Michael YOUNG*, Mike W. Peng, David Ahlstrom, Garry D. Bruton, Yi Jiang

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

910 Citations (Scopus)

Abstract

Instead of traditional principal-agent conflicts espoused in most research dealing with developed economies, principal-principal conflicts have been identified as a major concern of corporate governance in emerging economies. Principal-principal conflicts between controlling shareholders and minority shareholders result from concentrated ownership, extensive family ownership and control, business group structures, and weak legal protection of minority shareholders. Such principal-principal conflicts alter the dynamics of the corporate governance process and, in turn, require remedies different from those that deal with principal-agent conflicts. This article reviews and synthesizes recent research from strategy, finance, and economics on principal-principal conflicts with an emphasis on their institutional antecedents and organizational consequences. The resulting integration provides a foundation upon which future research can continue to build.

Original languageEnglish
Pages (from-to)196-220
Number of pages25
JournalJournal of Management Studies
Volume45
Issue number1
DOIs
Publication statusPublished - Jan 2008

Scopus Subject Areas

  • Business and International Management
  • Strategy and Management
  • Management of Technology and Innovation

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