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

Year 2012, Volume: 4 Issue: 2, 187 - 199, 01.12.2012

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.

References

  • Plaza-Úbed et al. (2010) ;
  • Sharma and Vredenburg (1998) ; Strong et al. (2001)
  • CLSA (2002) ; Sudarsono, et al. (2006) ; Adendorff (2008) ; CLSA (2002)
  • Jongsureyapart (2006) ; CLSA
  • (2006) ; Sudarsono et al. (2006)
  • CLSA (2002) ; Sudarsono et al. (2006) Wan and Ong (2005) ;
  • Jongsureyapart (2006) ; Zahra and Pearce (1990)
  • Wan and Ong (2005) ; Zahra and Pearce (1990)
  • Ingley and Van der Walt (2001) ; Adendorff (2008) ; items strategic guidance
  • Arjoon, Surendra (2005), “Corporate governance: an ethical perspective”, Journal of Business Ethics, Vol. 61, No. 4, pp.343-52.
  • Standards Australia Limited (2003), AS 8000 Good Governance Principles, http://www.standards.org.au , [Accessed 1.07.2010]
  • Banham, Heather, and He Yunke (2010), “SME Governance: Converging
  • 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.
  • Charreaux, Gérard (2000), “Le conseil d’administration dans les théories de la gouvernance”, FARGO Working Paper, 001201, Université de Bourgogne.
  • Cortada, James and Woods John (2000), The knowledge management yearbook
  • –2001, Woburn MA: Butterworth-Heinemann.
  • CLSA, (2002), Corporate Governance Watch: Corporate Governance in
  • Emerging Markets, http://www.clsa.com/ , [Accessed 1.08.2010]
  • D’Aveni, Richard (1994), Hypercompetition: Managing the dynamics of strategic maneuvering, New York: The Free Press.
  • Davies, Adrian (1999), A Strategic Approach to Corporate Governance, Aldershot: Gower Pub.
  • De Castro, Julia, Meyer, Dale, Strong Kelly and Uhlenbruck, Nikolaus (1996),
  • “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
  • Relationships”, Journal of Marketing, Vol. 51, No. 2, pp.11-27. Epstein, Marc and Birchard Bill (1999), Counting What Counts: Turning Corporate
  • Accountability into Competitive Advantage, Reading, MA: Perseus Books. Fama, Eugene and Jensen Michael (1983), “Separation of ownership and control”,
  • Journal of Law and Economics, Vol. 26, No. 2, pp.301-325. Fink, Arlene (1995), The Survey Handbook, London: Sage.
  • Fox, Merritt (2006), “What is Good Corporate Governance?”, (in: Fox Merritt and Heller Michael, Ed., Corporate Governance Lessons from Transition Economy
  • Reforms), Princeton: Princeton University Press, pp.3-34. Freeman, Edward (1984), Strategic management: A stakeholder approach,
  • Massachusetts: Pitman. Gaa, James (2009), “Corporate Governance and the Responsibility of the Board of
  • 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),
  • 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.
  • Walsh, Gianfranco, and WiedmannKlaus-Peter (2004), “A Conceptualization of
  • 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
  • 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.
  • Ingley, Coral, and Van Der Walt Nicholas (2001), “The strategic board: The changing role of directors in developing and maintaining corporate capability”,
  • Corporate Governance: An International Review, Vol. 9, No. 3, pp.174-185. Jesover, Fianna and Kirkpatrick Grant (2005), “The Revised OECD Principles of
  • 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:
  • 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.
  • 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.
  • McKinsey & Company (2002), Global Investor Opinion Survey on Corporate
  • Governance, http://www.mckinsey.com/ , [Accessed 15.07.2010]
  • 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.
  • Monks, Robert and Minow Nell (2004), Corporate Governance, Cambridge: Blackwell Business.
  • Mustakallio, Mokko and Autio, Erkko (2001), “Effects of formal and social controls on strategic decision making in family firms”,(in Corbetta, Guido and Montemerlo
  • 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]
  • Pahuja, Anurag, and Bhatia B.S. (2010), “Determinants of Corporate Governance
  • 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),
  • “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”,
  • 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.
  • Strong, Kelly, Ringer, Richard and Taylor Steven (2001), “THE* Rules of
  • 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
  • Organization Environment’ Supporting of Good Corporate Governance Enforcement http://appc.snu.ac.kr/files/1039_paper.pdf, [Accessed 25.07.2010]
  • Susnienė, Dalia and Vanagas Povilas (2007),“Means for Satisfaction of Stakeholders’
  • 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
  • Governance: An International Review, Vol. 13, No. 2, pp.277-290. Watson, Gregory (2003), “Corporate Governance: Quality at the Top”, ASQ's
  • Annual Quality Congress Proceedings, 57, pp.123-137. Wilson, David (1995), “An integrated model of buyer-seller relationships”,
  • Journal of the Academy of Marketing Science, Vol. 23, No. 4, pp.335-345
  • 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.
  • Zandstra, Gerald (2002), “Enron, board governance and moral failings”,
  • Corporate Governance, Vol. 2, No. 2, pp.16-19. Financial Performance,
Year 2012, Volume: 4 Issue: 2, 187 - 199, 01.12.2012

Abstract

References

  • Plaza-Úbed et al. (2010) ;
  • Sharma and Vredenburg (1998) ; Strong et al. (2001)
  • CLSA (2002) ; Sudarsono, et al. (2006) ; Adendorff (2008) ; CLSA (2002)
  • Jongsureyapart (2006) ; CLSA
  • (2006) ; Sudarsono et al. (2006)
  • CLSA (2002) ; Sudarsono et al. (2006) Wan and Ong (2005) ;
  • Jongsureyapart (2006) ; Zahra and Pearce (1990)
  • Wan and Ong (2005) ; Zahra and Pearce (1990)
  • Ingley and Van der Walt (2001) ; Adendorff (2008) ; items strategic guidance
  • Arjoon, Surendra (2005), “Corporate governance: an ethical perspective”, Journal of Business Ethics, Vol. 61, No. 4, pp.343-52.
  • Standards Australia Limited (2003), AS 8000 Good Governance Principles, http://www.standards.org.au , [Accessed 1.07.2010]
  • Banham, Heather, and He Yunke (2010), “SME Governance: Converging
  • 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.
  • Charreaux, Gérard (2000), “Le conseil d’administration dans les théories de la gouvernance”, FARGO Working Paper, 001201, Université de Bourgogne.
  • Cortada, James and Woods John (2000), The knowledge management yearbook
  • –2001, Woburn MA: Butterworth-Heinemann.
  • CLSA, (2002), Corporate Governance Watch: Corporate Governance in
  • Emerging Markets, http://www.clsa.com/ , [Accessed 1.08.2010]
  • D’Aveni, Richard (1994), Hypercompetition: Managing the dynamics of strategic maneuvering, New York: The Free Press.
  • Davies, Adrian (1999), A Strategic Approach to Corporate Governance, Aldershot: Gower Pub.
  • De Castro, Julia, Meyer, Dale, Strong Kelly and Uhlenbruck, Nikolaus (1996),
  • “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
  • Relationships”, Journal of Marketing, Vol. 51, No. 2, pp.11-27. Epstein, Marc and Birchard Bill (1999), Counting What Counts: Turning Corporate
  • Accountability into Competitive Advantage, Reading, MA: Perseus Books. Fama, Eugene and Jensen Michael (1983), “Separation of ownership and control”,
  • Journal of Law and Economics, Vol. 26, No. 2, pp.301-325. Fink, Arlene (1995), The Survey Handbook, London: Sage.
  • Fox, Merritt (2006), “What is Good Corporate Governance?”, (in: Fox Merritt and Heller Michael, Ed., Corporate Governance Lessons from Transition Economy
  • Reforms), Princeton: Princeton University Press, pp.3-34. Freeman, Edward (1984), Strategic management: A stakeholder approach,
  • Massachusetts: Pitman. Gaa, James (2009), “Corporate Governance and the Responsibility of the Board of
  • 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),
  • 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.
  • Walsh, Gianfranco, and WiedmannKlaus-Peter (2004), “A Conceptualization of
  • 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
  • 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.
  • Ingley, Coral, and Van Der Walt Nicholas (2001), “The strategic board: The changing role of directors in developing and maintaining corporate capability”,
  • Corporate Governance: An International Review, Vol. 9, No. 3, pp.174-185. Jesover, Fianna and Kirkpatrick Grant (2005), “The Revised OECD Principles of
  • 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:
  • 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.
  • 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.
  • McKinsey & Company (2002), Global Investor Opinion Survey on Corporate
  • Governance, http://www.mckinsey.com/ , [Accessed 15.07.2010]
  • 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.
  • Monks, Robert and Minow Nell (2004), Corporate Governance, Cambridge: Blackwell Business.
  • Mustakallio, Mokko and Autio, Erkko (2001), “Effects of formal and social controls on strategic decision making in family firms”,(in Corbetta, Guido and Montemerlo
  • 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]
  • Pahuja, Anurag, and Bhatia B.S. (2010), “Determinants of Corporate Governance
  • 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),
  • “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”,
  • 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.
  • Strong, Kelly, Ringer, Richard and Taylor Steven (2001), “THE* Rules of
  • 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
  • Organization Environment’ Supporting of Good Corporate Governance Enforcement http://appc.snu.ac.kr/files/1039_paper.pdf, [Accessed 25.07.2010]
  • Susnienė, Dalia and Vanagas Povilas (2007),“Means for Satisfaction of Stakeholders’
  • 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
  • Governance: An International Review, Vol. 13, No. 2, pp.277-290. Watson, Gregory (2003), “Corporate Governance: Quality at the Top”, ASQ's
  • Annual Quality Congress Proceedings, 57, pp.123-137. Wilson, David (1995), “An integrated model of buyer-seller relationships”,
  • Journal of the Academy of Marketing Science, Vol. 23, No. 4, pp.335-345
  • 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.
  • Zandstra, Gerald (2002), “Enron, board governance and moral failings”,
  • Corporate Governance, Vol. 2, No. 2, pp.16-19. Financial Performance,
There are 59 citations in total.

Details

Other ID JA44UJ97KJ
Journal Section Articles
Authors

Wajdi Ben Rejeb This is me

Mohamed Frioui This is me

Publication Date December 1, 2012
Published in Issue Year 2012 Volume: 4 Issue: 2

Cite

APA Rejeb, W. B., & Frioui, M. (2012). THE IMPACT OF GOOD CORPORATE GOVERNANCE PRACTICES ON STAKEHOLDER’S SATISFACTION IN TUNISIAN LISTED COMPANIES. International Journal of Business and Management Studies, 4(2), 187-199.
AMA Rejeb WB, Frioui M. THE IMPACT OF GOOD CORPORATE GOVERNANCE PRACTICES ON STAKEHOLDER’S SATISFACTION IN TUNISIAN LISTED COMPANIES. IJBMS. December 2012;4(2):187-199.
Chicago Rejeb, Wajdi Ben, and Mohamed Frioui. “THE IMPACT OF GOOD CORPORATE GOVERNANCE PRACTICES ON STAKEHOLDER’S SATISFACTION IN TUNISIAN LISTED COMPANIES”. International Journal of Business and Management Studies 4, no. 2 (December 2012): 187-99.
EndNote Rejeb WB, Frioui M (December 1, 2012) THE IMPACT OF GOOD CORPORATE GOVERNANCE PRACTICES ON STAKEHOLDER’S SATISFACTION IN TUNISIAN LISTED COMPANIES. International Journal of Business and Management Studies 4 2 187–199.
IEEE W. B. Rejeb and M. Frioui, “THE IMPACT OF GOOD CORPORATE GOVERNANCE PRACTICES ON STAKEHOLDER’S SATISFACTION IN TUNISIAN LISTED COMPANIES”, IJBMS, vol. 4, no. 2, pp. 187–199, 2012.
ISNAD Rejeb, Wajdi Ben - Frioui, Mohamed. “THE IMPACT OF GOOD CORPORATE GOVERNANCE PRACTICES ON STAKEHOLDER’S SATISFACTION IN TUNISIAN LISTED COMPANIES”. International Journal of Business and Management Studies 4/2 (December 2012), 187-199.
JAMA Rejeb WB, Frioui M. THE IMPACT OF GOOD CORPORATE GOVERNANCE PRACTICES ON STAKEHOLDER’S SATISFACTION IN TUNISIAN LISTED COMPANIES. IJBMS. 2012;4:187–199.
MLA Rejeb, Wajdi Ben and Mohamed Frioui. “THE IMPACT OF GOOD CORPORATE GOVERNANCE PRACTICES ON STAKEHOLDER’S SATISFACTION IN TUNISIAN LISTED COMPANIES”. International Journal of Business and Management Studies, vol. 4, no. 2, 2012, pp. 187-99.
Vancouver Rejeb WB, Frioui M. THE IMPACT OF GOOD CORPORATE GOVERNANCE PRACTICES ON STAKEHOLDER’S SATISFACTION IN TUNISIAN LISTED COMPANIES. IJBMS. 2012;4(2):187-99.