Recapping themes of governance and performance

In 2016 the GLC commissioned an academic review of global governance research and trends.

Corporate governance, and the link between governance and performance, remains a topical focus for public policy makers, academics and commentators.

In November 2016 the Governance Leadership Centre published the findings of a commissioned review by the University of Sydney Business School on governance research trends and themes.

The report, Emerging Themes of Corporate Governance & Firm Performance, reviews 305 research papers across six academic journals, published over the five year period prior to publication.

The results are summarised in this report, along with the assessment of implications for policy makers and suggestions for future research directions.

The papers were analysed using both a deductive and inductive lens to identify nine key corporate governance research themes:

1. ownership structure;
2. the role of executives (including leadership and remuneration);
3. the role of stakeholders (including shareholder activism);
4. corporate governance performance and effectiveness;
5. board operation;
6. social and environmental responsibility;
7. board composition (including capability and diversity);
8. company sustainability, risk and reputation; and
9. national systems of corporate governance.

The researchers identify common challenges in the literature, including a lack of focus on practical insights and application, and the need for more holistic studies of governance and its impact.

“Corporate governance research needs to look beyond a list of ideal characteristics or results to consider, amongst other explanations, corporate governance processes and practices”, noted the authors.