Corporate governance models in emerging markets: the case of India

S Machold, AK Vasudevan - International Journal of …, 2004 - inderscienceonline.com
S Machold, AK Vasudevan
International Journal of Business Governance and Ethics, 2004inderscienceonline.com
Corporate governance has come to be recognised as a cornerstone of economic reforms
seeking to promote stability and growth in developing countries. The Asian crisis of the 1997
was viewed as having roots in poor governance and hence national governments as well as
international organisations have sought to promote a strengthening of governance
mechanisms. This article investigates governance reforms in India over the last decade. The
paper reviews changes in Indian governance codes that indicate a preference of adoption of …
Corporate governance has come to be recognised as a cornerstone of economic reforms seeking to promote stability and growth in developing countries. The Asian crisis of the 1997 was viewed as having roots in poor governance and hence national governments as well as international organisations have sought to promote a strengthening of governance mechanisms. This article investigates governance reforms in India over the last decade. The paper reviews changes in Indian governance codes that indicate a preference of adoption of Anglo-American governance models. A survey of ownership structures of Indian listed companies reveals a mixture of governance mechanisms and a persistence of the "business house model" of governance. The paper concludes that despite external pressures towards an "Anglo-Americanisation" of governance practice, the outcomes thus far reveal the emergence of a diversity of governance mechanisms arising in a path-dependent fashion.
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