Culture and corporate governance, a theoretical perspective

There has been a growing body of research studies between CG compliance and organizational performance. (Research on the relationship between CG compliance and organizational performance has seen robust growth in recent times.) However (Despite this), the existing research does not explore the problem of compliance in the context of a highly networked developing countries characterized by the dominant presence of influential family stakeholder groups. Hence, the aim of this paper is to demonstrate an underst and ing of the impact of culture on CG for minority shareholders’ interests & to substantiate the relationship between CG and culture and it’s impact on economical developments. The conceptual framework to underst and how such highly networked culture affects minorities interests is based upon cultural value models, such as Hofstede’s and Schwartz’s, linking societal constructs with the legal and political milieu. As such, this paper will contribute to increase our underst and ing of the influence of cultural values on corporate governance practises across the global spectrum with particular reference to the protection of minority shareholder rights.