THE IMPACT OF GOOD CORPORATE GOVERNANCE PRACTICES ON STAKEHOLDER’S SATISFACTION IN TUNISIAN LISTED COMPANIES

Abstract

This research deals with the contribution of good governance practices to stakeholder’s satisfaction. The aim of this paper is to demonstrate that the good governance practices are a driver of stakeholder’s satisfaction and therefore a factor of a sustainable competitive advantage development in the developing economies that do not have active markets and sound external institutions with the power to establish good corporate governance practices. The literature review provides core references related to the the good corporate governance conceptualization through three dimensions: Prerequisites (Governance structures and Directors’ skills), Principles (Responsibility, Accountability, Fairness and Transparency) and Mission (board monitoring and strategic guidance). The survey of 52 Tunisian listed companies revealed that the corporate governance have a positive and partial impact on stakeholder’s satisfaction.

Keywords

• Good corporate governance, stakeholder’s satisfaction, Tunisia

References

1. Plaza-Úbed et al. (2010) ;
2. Sharma and Vredenburg (1998) ; Strong et al. (2001)
3. CLSA (2002) ; Sudarsono, et al. (2006) ; Adendorff (2008) ; CLSA (2002)
4. Jongsureyapart (2006) ; CLSA
5. (2006) ; Sudarsono et al. (2006)
6. CLSA (2002) ; Sudarsono et al. (2006) Wan and Ong (2005) ;
7. Jongsureyapart (2006) ; Zahra and Pearce (1990)
8. Wan and Ong (2005) ; Zahra and Pearce (1990)

9. Ingley and Van der Walt (2001) ; Adendorff (2008) ; items strategic guidance
10. Arjoon, Surendra (2005), “Corporate governance: an ethical perspective”, Journal of Business Ethics, Vol. 61, No. 4, pp.343-52.
11. Standards Australia Limited (2003), AS 8000 Good Governance Principles, http://www.standards.org.au , [Accessed 1.07.2010]
12. Banham, Heather, and He Yunke (2010), “SME Governance: Converging
13. Definitions and Expanding Expectations”, The International Business & Economics Research Journal, Vol. 9, No. 2, pp.77-82. Bussing, André (1992), “A dynamic view of job satisfaction in psychiatric nurses in Germany”, Work & Stress, Vol. 6, No.3, pp.69–259.
14. Charreaux, Gérard (2000), “Le conseil d’administration dans les théories de la gouvernance”, FARGO Working Paper, 001201, Université de Bourgogne.
15. Cortada, James and Woods John (2000), The knowledge management yearbook
16. –2001, Woburn MA: Butterworth-Heinemann.
17. CLSA, (2002), Corporate Governance Watch: Corporate Governance in
18. Emerging Markets, http://www.clsa.com/ , [Accessed 1.08.2010]
19. D’Aveni, Richard (1994), Hypercompetition: Managing the dynamics of strategic maneuvering, New York: The Free Press.
20. Davies, Adrian (1999), A Strategic Approach to Corporate Governance, Aldershot: Gower Pub.
21. De Castro, Julia, Meyer, Dale, Strong Kelly and Uhlenbruck, Nikolaus (1996),
22. “Government objectives and organizational characteristics: A stakeholder view of privatization effectiveness”, International Journal of Organizational Analysis, Vol. 4, No. 4, pp.373-392. Dwyer, Robert, Schurr, Paul and Oh Sejo (1987), “Developing Buyer-Seller
23. Relationships”, Journal of Marketing, Vol. 51, No. 2, pp.11-27. Epstein, Marc and Birchard Bill (1999), Counting What Counts: Turning Corporate
24. Accountability into Competitive Advantage, Reading, MA: Perseus Books. Fama, Eugene and Jensen Michael (1983), “Separation of ownership and control”,
25. Journal of Law and Economics, Vol. 26, No. 2, pp.301-325. Fink, Arlene (1995), The Survey Handbook, London: Sage.
26. Fox, Merritt (2006), “What is Good Corporate Governance?”, (in: Fox Merritt and Heller Michael, Ed., Corporate Governance Lessons from Transition Economy
27. Reforms), Princeton: Princeton University Press, pp.3-34. Freeman, Edward (1984), Strategic management: A stakeholder approach,
28. Massachusetts: Pitman. Gaa, James (2009), “Corporate Governance and the Responsibility of the Board of
29. Directors for Strategic Financial Reporting”, Journal of Business Ethics, Vol. 90, No. 2, pp.179–197. Hair, Joseph, Anderson Rolph, Tatham Ronald and Black William (1998),
30. Multivariate Data Analysis, New Jersey: Prentice-Hall. Han, Sang-Lin, Wilson David and Dant Shirish (1993), “Buyer-supplier relationships today”, Industrial Marketing Management, Vol. 22, No. 4; pp.331-338.
31. Walsh, Gianfranco, and WiedmannKlaus-Peter (2004), “A Conceptualization of
32. Corporate Reputation in Germany: An Evaluation and Extension of the RQ”, Corporate Reputation Review, Vol. 6, No. 4, pp.304–312. Hillman, Amy, and Keim Gerald (2001), “Shareholder Value, Stakeholder
33. Management, and Social Issues: What’s the Bottom Line?”, Strategic Management Journal, Vol. 22, No. 2, pp.125–139. Huse, Morten, (2005), contingencies”, Journal of corporate ownership and control, Vol. 2, No. 4, pp.41-50.
34. Ingley, Coral, and Van Der Walt Nicholas (2001), “The strategic board: The changing role of directors in developing and maintaining corporate capability”,
35. Corporate Governance: An International Review, Vol. 9, No. 3, pp.174-185. Jesover, Fianna and Kirkpatrick Grant (2005), “The Revised OECD Principles of
36. Corporate Governance and their Relevance to Non-OECD Countries”, Corporate Governance, Vol. 13, No. 2, pp.127-136. Johnson, Jonathan, Daily Catherine and Ellstrand Alan (1996), “Boards of directors:
37. A review and research agenda”, Journal of Management, Vol. 22, No. 3, pp.409-438. Ljubojević, Čedomir and Ljubojević Gordana (2009), “Improving the stakeholder satisfaction by corporate governance quality”, Modern Business School Working paper 005.21:334.72.021, Belgrad.
38. Lynall, Matthew, Golden, Brian and Hillman Amy (2003), “Board composition from adolescence to maturity: A multitheoric view”, Academy of Management Review, Vol. 28, No. 3, pp.416-432.
39. McKinsey & Company (2002), Global Investor Opinion Survey on Corporate
40. Governance, http://www.mckinsey.com/ , [Accessed 15.07.2010]
41. Mitchell, Ronald, Agle, Bradley and Wood Donna (1997), “Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts”, Academy of Management Review, Vol. 22, No. 4, pp.853- 866.
42. Monks, Robert and Minow Nell (2004), Corporate Governance, Cambridge: Blackwell Business.
43. Mustakallio, Mokko and Autio, Erkko (2001), “Effects of formal and social controls on strategic decision making in family firms”,(in Corbetta, Guido and Montemerlo
44. Daniela, Ed., The role of family in family business, Milano: EGEA, pp.205-222. Nicholson, Gavin, and Kiel Geoffrey (2004), “A framework for diagnosing board effectiveness”, Corporate Governance An International Review, Vol. 12, No. 4, 442-460. OECD http://www.oecd.org/dataoecd/32/18/31557724.pdf , [Accessed 10.07.2010]
45. Pahuja, Anurag, and Bhatia B.S. (2010), “Determinants of Corporate Governance
46. Disclosures: Evidence from Companies in Northern India”, The IUP Journal of Corporate Governance, Vol. 9, No. 3, pp.69-88. Governance Principles, Plaza-Úbeda, José, Burgos-Jiménez Jéronimo, and Carmona-Moreno Eva (2010),
47. “Measuring Stakeholder Integration”, Journal of Business Ethics, Vol. 93, No. 3, pp.419-442. Sharma, Sanjay, and Vredenburg Harrie (1998), “Proactive corporate environmental strategy and the development of competitively valuable organizational capabilities”,
48. Strategic Management Journal, Vol. 19, No. 8, pp.729-753. Shearer, Teri, (2002), “Ethics and accountability: from the for-itself to the for-the- other” Accounting, Organizations and Society, Vol. 27, No. 6, pp.541-73.
49. Strong, Kelly, Ringer, Richard and Taylor Steven (2001), “THE* Rules of
50. Stakeholder Satisfaction (* Timeliness, Honesty, Empathy)”, Journal of Business Ethics, Vol. 32, No. 3, pp.219-230. Sudarsono D.T.E., Pratiwi C.W. and Suhendra E.S. (2006), The Internal
51. Organization Environment’ Supporting of Good Corporate Governance Enforcement http://appc.snu.ac.kr/files/1039_paper.pdf, [Accessed 25.07.2010]
52. Susnienė, Dalia and Vanagas Povilas (2007),“Means for Satisfaction of Stakeholders’
53. Needs and Interests”, Engineering Economics, Vol. 55, No. 5, pp.24-28. Wan, David, and Ong Chin Huat (2005), “Board Structure, Process and Performance: Evidence from public-listed companies in Singapore”, Corporate
54. Governance: An International Review, Vol. 13, No. 2, pp.277-290. Watson, Gregory (2003), “Corporate Governance: Quality at the Top”, ASQ's
55. Annual Quality Congress Proceedings, 57, pp.123-137. Wilson, David (1995), “An integrated model of buyer-seller relationships”,
56. Journal of the Academy of Marketing Science, Vol. 23, No. 4, pp.335-345
57. Zahra, Shaker, and Pearce John (1989), “Boards of directors and corporate financial performance: a review and integrative model”, Journal of Management, Vol. 15, No. 2, pp.291-334.
58. Zandstra, Gerald (2002), “Enron, board governance and moral failings”,
59. Corporate Governance, Vol. 2, No. 2, pp.16-19. Financial Performance,