Corporate Governance and Disclosure

Oxford University Press eBooks, pp. 336–384

Abstract

Abstract This chapter describes corporate governance and disclosure in multinational enterprises (MNEs). Corporate governance is the system of rules and practices by which the corporation is directed and controlled. It is a multifaceted concept, emerging from divergent views over the corporation’s legitimate objectives and complex interactions between corporate behaviour and national cultural and social influences. Accordingly, MNE affiliates will encounter divergent corporate governance principles in their countries of operation. Corporate governance, influenced by economic globalization, appears to be moving towards a rough, and imperfect, consensus based on variants of the ‘enlightened shareholder value’ model. The chapter then focuses on the key issue of how to make the corporation accountable. Adequate corporate disclosure, based on corporate reports and independently audited accounts, remains ‘the bed-rock of company law’. The chapter considers developments in disclosure and accounting requirements, alongside accountability enhancing internal corporate governance structures. It assesses external accountability and oversight, including through regulatory bodies and professional standard setting agencies, as well as disclosure and accounting practices.

Authors 3

1. Muchlinski Peter T

   University of London · SOAS University of London

   Affiliation as printed

   School of Oriental and African Studies, University of London

2. Ebbe Rogge Aachen

   Leiden University

   Affiliation as printed

   Leiden University

3. Barnali Choudhury

   York University

   Affiliation as printed

   Osgoode Hall Law School