Saturday, April 01, 2006

Hello and welcome to the Governance Watch Blog!

This blog is written by an almost-Ph.D. in Finance with a special interest in corporate governance. I am deeply concerned with issues related to corporate wrongdoing and fraud, and all the checks and balances we have in place to make sure managers act in the interest of their employers, the shareholders who entrust them with their company. The checks and balances include both carrots and sticks: incentives like performance-based pay and bonus, to punitive legal action or reputational consequences (losing their job) that may be a strong negative incentive.
As a part-academician, I plan to bring insight from leading academic research to bear upon this issue, as well as bring to light recent happenings in the corporate world in the field of fraud, manipulation, deterrence and (even) examples of good corporate governance - all in one place.
I want to stress that my focus will be primarily application-oriented, but will be informed by some of the leading research in the field. I plan to constantly move between descriptions of the positive (what IS happening - even if it isn't too positive! This will be informed both by academic research - large-scale data analysis, as well as individual companies in the news) to the normative (what should happen - and academic research will come in here too).
Please check back for frequent updates!


Anonymous said...

A welcome venture. Would be of interest even to the common man, all over the civilised world.
A valid question which could be taken up : In the context of global trade is there a common playing field if one considers the varying laws and perceptions, in different countries, tacit or otherwise, regarding "the incentive, middle-man's commission , or to put it bluntly bribery", in international competitive bids ?
Is it pssible to have an International Law ?

An Interested Reader

Sam said...

Good question. If the US outlaws bribery of foreign officials whereas other countries allow it, the playing field clearly does not seem to be level.
I wonder how large the economic impact of this restriction is on US companies. It would be interesting to have a study which tries to quantify how much these companies are losing out, just because of this rule.
An international law seems to be a good idea, but I'm not sure how workable it is given that we do not have one super-effective international trade organization.