Areneke, G. and Tunyi, A.A. orcid.org/0000-0002-5761-931X (2022) Chairperson and CEO foreignness and CG quality of emerging markets MNCs: moderating role of international board interlocks. International Journal of Finance and Economics, 27 (3). pp. 3071-3092. ISSN 1076-9307
Abstract
We examine whether foreign chief executive officers (FCEOs) and foreign independent board chairpersons (FIBCs) improve on the corporate governance (CG) practices of emerging market multinational corporations (EMMNCs) through governance spill over. We use hand‐collected data for 80 listed Nigerian multinational corporations for the period 2011–2016 (480 firm‐years) and apply a three‐stage least squares regression to address endogeneity issues. Our findings show international exposure of EMMNCs motivate appointment of FIBCs and FCEOs who positively affect their CG quality. In addition, international board interlocks positively moderate the likelihood of FCEOs to export and enhance EMMNCs' CG quality, but negatively moderate FIBCs impact on CG practices of EMMNCs. Finally, we develop a framework to show how EMMNCs' CG practices are exemplary to local firms in the home country who may mimic these governance practices. We contend the repeated game of governance spill‐over and mimetic isomorphism drives the evolution of CG institutions and, potentially, will generate institutional change in CG practices in emerging markets.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 The Authors. International Journal of Finance & Economics published by John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, (http://creativecommons.org/licenses/by/4.0/) which permits use, distribution and reproduction in any medium, provided the original work is properly cited. |
Keywords: | Foreign CEO; Foreign Independent Board Chairman; Corporate Governance Quality; Board International Interlocks; Governance Isomorphism; Repeated Game; Emerging Market Multinational Corporations |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 15 Oct 2020 11:04 |
Last Modified: | 19 Jun 2024 15:11 |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1002/ijfe.2313 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:166374 |