corporate governance research papers pdf

International corporate governance: A review and opportunities for future research

• Review Article
• Published: 03 April 2019
• Volume 50 , pages 457–498, ( 2019 )

Cite this article

• Ruth V. Aguilera 1 , 2 ,
• Valentina Marano 1 &
• Ilir Haxhi 3  

9316 Accesses

6 Altmetric

Explore all metrics

We review four decades of research about the corporate governance of multinational corporations (MNCs), which we label International Corporate Governance (ICG). We identify and discuss three main streams of research that draw on different conceptualizations and theoretical lenses of (corporate) governance. After synthesizing their respective findings, we propose several avenues for future research that integrate these three streams of research with the goal of developing a more nuanced understanding of ICG. We hope this review article will inspire international business scholars to continue examining how corporate governance can be an effective tool for MNC success.

Dans cet article, nous passons en revue quatre décennies de recherche sur la gouvernance d’entreprise des firmes multinationales (FMN), que nous appelons Gouvernance internationale des sociétés (GIS). Nous identifions et discutons trois grands courants de recherche qui s’appuient sur différents angles conceptuels et théoriques de la gouvernance (d’entreprise). Après avoir résumé leurs résultats respectifs, nous proposons plusieurs pistes futures de recherche qui intègrent ces trois axes de recherche dans le but de développer une compréhension plus nuancée de la GIS. Nous espérons que cet article de synthèse inspirera les spécialistes de l’ international business pour continuer à examiner comment la gouvernance d’entreprise peut être un outil efficace pour le succès des FMN.

En este artículo, revisamos cuatro décadas de investigación sobre el gobierno corporativo de una empresa multinacional (EMN), que etiquetamos como Gobierno Corporativo Internacional (GCI). Identificamos y discutimos tres corrientes de investigación que se basan en diferentes conceptualizaciones y lentes teóricos de gobierno (corporativo). Después de sintetizar sus hallazgos respectivos, proponemos diferentes avenidas para la investigación futura que integra estas tres corrientes de investigación con el objetivo de desarrollar una comprensión más matizada del GCI. Esperamos que este artículo de revisión inspire a los académicos de negocios internacionales a continuar examinando como el gobierno corporativo puede ser una herramienta efectiva para el éxito de las EMN.

Neste artigo, revisamos quatro décadas de pesquisas sobre a governança corporativa de corporações multinacionais (MNCs), as quais denominamos Governança Corporativa Internacional (ICG). Identificamos e discutimos três principais correntes de pesquisa que se baseiam em diferentes conceituações e lentes teóricas da governança (corporativa). Depois de sintetizar suas respectivas conclusões, propomos vários caminhos para futuras pesquisas que integram essas três correntes de pesquisa com o objetivo de desenvolver uma compreensão mais sutil da ICG. Esperamos que este artigo de revisão inspire acadêmicos de negócios internacionais a continuar examinando como a governança corporativa pode ser uma ferramenta eficaz para o sucesso das MNCs.

在本文中,我们综述了四十年来关于跨国公司(MNCs)公司治理的研究, 我们将其称为国际公司治理(ICG)。我们确定并讨论了三个主要的利用了(公司)治理不同概念和理论视角的研究分支。在综合了它们各自的研究结果后, 我们提出了未来研究的几种途径, 将这三个研究分支整合在一起, 旨在开发对ICG更细微的理解。我们希望这篇综述文章能启发国际商务学者继续研究公司治理如何能成为跨国公司成功的有效工具。

This is a preview of subscription content, log in via an institution to check access.

Access this article

Subscribe and save.

• Get 10 units per month
• Download Article/Chapter or eBook
• 1 Unit = 1 Article or 1 Chapter
• Cancel anytime

Price excludes VAT (USA) Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Rent this article via DeepDyve

Institutional subscriptions

Similar content being viewed by others

Corporate governance: what we know and what we don’t know

Corporate Governance: Towards a New Foundation for both Developed and Transition Economies

Corporate governance systems diversity: a coasian perspective on stakeholder rights.

Aguilera, R. V., & Crespí-Cladera, R. 2016. Global corporate governance: On the relevance of firms’ ownership structure. Journal of World Business, 51(1): 50–57.

Google Scholar  

Aguilera, R. V., Desender, K., Bednar, M. K., & Lee, J. H. 2015. Connecting the dots: Bringing external corporate governance into the corporate governance puzzle. Academy of Management Annals, 9(1): 483–573.

Aguilera, R. V., Desender, K. A., López-Puertas Lamy, M., & Lee, J. H. 2017. The governance impact of a changing investor landscape. Journal of International Business Studies, 48(2): 195–221.

Aguilera, R. V., Filatotchev, I., Gospel, H., & Jackson, G. 2008. An organizational approach to comparative corporate governance: Costs, contingencies, and complementarities. Organization Science, 19(3): 475–492.

Aguilera, R. V., Florackis, C., & Kim, H. 2016. Advancing the corporate governance research agenda. Corporate Governance: An International Review, 24(3): 172–180.

Aguilera, R. V., & Grøgaard, B. 2019. The dubious role of institutions in international business. A road forward. Journal of International Business Studies, 50(1): 20–35.

Aguilera, R. V., & Haxhi, I. 2019. Comparative corporate governance in emerging markets. In K. Meyer & R. Grosse (Eds.), Oxford handbook on management in emerging markets . Oxford: Oxford University Press. https://doi.org/10.1093/oxfordhb/9780190683948.013.9 .

Chapter   Google Scholar  

Aguilera, R. V., & Jackson, G. 2003. The cross-national diversity of corporate governance: Dimensions and determinants. Academy of Management Review, 28(3): 447–465.

Aguilera, R. V., & Jackson, G. 2010. Comparative and international corporate governance. The Academy of Management Annals, 4(1): 485–556.

Aguilera, R. V., Judge, W. Q., & Terjesen, S. A. 2018. Corporate governance deviance. Academy of Management Review, 43(1): 87–109.

Aguilera, R. V., Kabbach de Castro, L. R., Lee, J. H., & You, J. 2012. Corporate governance in emerging markets. In G. Morgan & R. Whitley (Eds.), Capitalisms and capitalism in the twenty-first century (pp. 319–344). Oxford: Oxford University Press.

Aguilera, R. V., & Williams, C. A. 2009. Law and finance: Inaccurate, incomplete, and important. BYU Legal Review, 9, 1412–1434.

Aguilera, R. V., Williams, C. A., Conley, J. M., & Rupp, D. E. 2006. Corporate governance and social responsibility: A comparative analysis of the UK and the US. Corporate Governance: An International Review, 14(3): 147–158.

Aguilera, V. R., & Cuervo-Cazurra, A. 2004. Codes of good governance worldwide: What is the trigger? Organization Studies, 25(3): 415–443.

Ahmadjian, C. L., & Robbins, G. E. 2005. A clash of capitalisms: Foreign shareholders and corporate restructuring in 1990s Japan. American Sociological Review, 70(3): 451–471.

Akbel, B., & Schnitzer, M. 2011. Creditor rights and debt allocation within multinationals. Journal of Banking & Finance, 35(6): 1367–1379.

Allred, B., Findley, M. G., Nielsen, D. L., & Sharman, J. C. 2017. Anonymous shell companies: A global audit study and field experiment in 176 countries. Journal of International Business Studies, 48(2): 596–619.

Almond, P., Edwards, T., & Clark, I. 2003. Multinationals and changing national business systems in Europe: Towards the ‘shareholder value’ model? Industrial Relations Journal, 34(5): 430–445.

Arregle, J. L., Duran, P., Hitt, M. A., & Essen, M. 2016. Why is family firms’ internationalization unique? A meta-analysis. Entrepreneurship Theory and Practice, 41(5): 801–831.

Arregle, J. L., Miller, T. L., Hitt, M. A., & Beamish, P. W. 2016. How does regional institutional complexity affect MNE internationalization? Journal of International Business Studies , 47(6): 697–722.

Arthurs, J. D., Hoskisson, R. E., Busenitz, L. W., & Johnson, R. A. 2008. Managerial agents watching other agents: Multiple agency conflicts regarding underpricing in IPO firms. Academy of Management Journal, 51: 277–294.

Athanassiou, N., & Nigh, D. 2002. The impact of the top management team’s international business experience on the firm’s internationalization: Social networks at work. Management International Review, 4(2): 157–181.

Ault, J. K., & Spicer, A. 2014. The institutional context of poverty: State fragility as a predictor of cross-national variation in commercial microfinance lending. Strategic Management Journal, 35(12): 1818–1838.

Banalieva, E., & Eddleston, K. 2011. Home regional focus and performance of family firms: The role of family vs. non-family leaders. Journal of International Business Studies, 42(8): 1060–1072.

Bartlett, C. A., & Ghoshal, S. 1989. Managing across borders: The transnational solution . Boston, MA: Harvard Business School Press.

Bebchuk, L. A., & Kastiel, K. 2017. The untenable case for perpetual dual-class stock. Virginia Law Review, 103: 585–631.

Bell, G., Filatotchev, I., & Aguilera, R. V. 2014. Corporate governance and investors’ perceptions of foreign IPO value: An institutional perspective. Academy of Management Journal, 57(1): 301–320.

Benito, G. R. G., Lunnan, R., & Tomassen, S. 2014. The virtue of in-between pragmatism: A balancing act between responsiveness and integration in a multinational company. In T. Pedersen, M. Venzin, T. Devinney, & L. Tihanyi (Eds.), Orchestration of the global network organization (pp. 75–97). Bingley: Emerald.

Benito, G. R. G., Petersen, B., & Welch, L. S. 2009. Towards more realistic conceptualisations of foreign operation mode. Journal of International Business Studies, 40(9): 1455–1470.

Benito, G. R. G., & Tomassen, S. 2010. Governance costs in headquarters-subsidiary relationships. In U. Andersson & U. Holm (Eds.), Managing the contemporary multinational: The role of headquarters (pp. 138–160). Cheltenham: Edward Elgar.

Birkinshaw, J., Holm, U., Thilenius, P., & Arvidsson, N. 2000. Consequences of perception gaps in the headquarters—Subsidiary relationship. International Business Review, 9(3): 321–344.

Birkinshaw, J., & Hood, N. 1998. Multinational subsidiary evolution: Capability and charter change in foreign-owned subsidiary companies. Academy of Management Review, 23(4): 773–795.

Björkman, I. 1994. Managing Swedish and Finnish multinational corporations: The role of the board of directors in French and Norwegian subsidiaries. International Business Review, 3(1): 47–69.

Björkman, I., & Furu, P. 2000. Determinants of variable pay for top managers of foreign subsidiaries in Finland. International Journal of Human Resource Management, 11(4): 698–713.

Boellis, A., Mariotti, S., Minichilli, A., & Piscitello, L. 2016. Family involvement and firms’ establishment mode choice in foreign markets. Journal of International Business Studies, 47(8): 929–950.

Boivie, S., Bednar, M. K., Aguilera, R. V., & Andrus, J. L. 2016. Are boards designed to fail? The implausibility of effective board monitoring. The Academy of Management Annals, 10(1): 319–407.

Boulton, T. J., Smart, S. B., & Zutter, C. J. 2010. IPO underpricing and international corporate governance. Journal of International Business Studies, 41(2): 206–222.

Bowe, M., Filatotchev, I., & Marshall, A. 2010. Integrating contemporary finance and international business research. International Business Review, 19(5): 435–445.

Brouthers, K. D., & Hennart, J. F. 2007. Boundaries of the firm: Insights from international entry mode research. Journal of Management, 33(3): 395–425.

Bruno, V., & Shin, H. S. 2014. Globalization of corporate risk taking. Journal of International Business Studies, 45(7): 800–820.

Buck, T., Liu, X., & Skovoroda, R. 2008. Top executive pay and firm performance in China. Journal of International Business Studies, 39(5): 833–850.

Buckley, P. J. 2009. Internalisation thinking: From the multinational enterprise to the global factory. International Business Review, 18(3): 224–235.

Buckley, P. J., & Casson, M. C. 1976. The future of the multinational enterprise . London: Homes and Meier.

Buckley, P. J., Chen, L., Clegg, L. J., & Voss, H. 2016. Experience and FDI risk-taking: A microfoundational reconceptualization. Journal of International Management, 22(2): 131–146.

Buckley, P. J., & Strange, R. 2011. The governance of the multinational enterprise: Insights from internalization theory. Journal of Management Studies, 48(2): 460–470.

Bulfone, F. 2016. Insider job: Corporate reforms and power resources in France, Italy and Spain. Socio-Economic Review, 15(2): 435–459.

Cannizzaro, A. P., & Weiner, R. J. 2018. State ownership and transparency in foreign direct investment. Journal of International Business Studies, 49(2): 172–195.

Carney, M., Gedajlovic, E., & Yang, X. 2009. Varieties of Asian capitalism: Toward an institutional theory of Asian enterprise. Asia Pacific Journal of Management, 26(3): 361–380.

Carpenter, M. A., & Fredrickson, J. W. 2001. Top management teams, global strategic posture, and the moderating role of uncertainty. Academy of Management Journal, 44(3): 533–545.

Carpenter, M. A., & Sanders, W. G. 2004. The effects of top management team pay and firm internationalization on MNC performance. Journal of Management, 30(4): 509–528.

Céspedes, J., González, M., & Molina, C. A. 2010. Ownership and capital structure in Latin America. Journal of Business Research, 63(3): 248–254.

Chen, H. L. 2011. Does board independence influence the top management team? Evidence from strategic decisions toward internationalization. Corporate Governance: An International Review, 19(4): 334–350.

Cioffi, J. W. 2000. Governing globalization? The state, law, and structural change in corporate governance. Journal of Law and Society, 27(4): 572–600.

Claessens, S., & Fan, J. P. 2002. Corporate governance in Asia: A survey. International Review of Finance, 3(2): 71–103.

Clegg, S., Geppert, M., & Hollinshead, G. 2018. Politicization and political contests in and around contemporary multinational corporations: An introduction. Human Relations, 71(6): 745–765.

Coase, R. H. 1937. The nature of the firm. Economica, 4(16): 386–405.

Costello, A., & Costello, T. 2009. Aligning the interests of subsidiaries and headquarters in multinational corporations: Empirical evidence. Multinational Business Review, 17(4): 163–204.

Cropanzano, R. 2009. Writing nonempirical articles for Journal of Management: General thoughts and suggestions. Journal of Management, 35(6): 1304–1311.

Cuervo-Cazurra, A., & Ramamurti, R. 2014. Understanding multinationals from emerging markets . Cambridge: Cambridge University Press.

Cui, L., & Jiang, F. 2012. State ownership effect on firms’ FDI ownership decisions under institutional pressure: A study of Chinese outward-investing firms. Journal of International Business Studies, 43(3): 264–284.

Cumming, D., Filatotchev, I., Knill, A., Reeb, D. M., & Senbet, L. 2017. Law, finance, and the international mobility of corporate governance. Journal of International Business Studies, 48(1): 123–147.

Cyert, R. M., & March, J. G. 1963. A behavioral theory of the firm . Englewood Cliffs, NJ: Prentice-Hall.

Czarniawska, B., & Sevón, G. 2011. Translating organizational change . Berlin: Walter de Gruyter.

Delios, A. 2011. Governance: The next frontier for research on multinational firms. Journal of Management Studies, 48(2): 456–459.

Demsetz, H., & Lehn, K. 1985. The structure of corporate ownership: Causes and consequences. Journal of Political Economy, 93(6): 1155–1177.

Denis, D. K., & McConnell, J. J. 2003. International corporate governance. Journal of Financial and Quantitative Analysis, 38(1): 1–36.

Desender, K. A., Aguilera, R. V., Crespi, R., & Garcia-Cestona, M. 2013. When does ownership matter? Board characteristics and behavior. Strategic Management Journal, 34(7): 823–842.

Desender, K., Aguilera, R. V., López-Puertas Lamy, M., & Crespí, R. 2016. A clash of governance logics: Foreign ownership and board monitoring. Strategic Management Journal, 37(2): 349–369.

Djelic, M. L., & Sahlin-Andersson, K. 2006. Transnational governance: Institutional dynamics of regulation . Cambridge: Cambridge University Press.

Doherty, A. M. 2000. Factors influencing international retailers’ market entry mode strategy: Qualitative evidence from the UK fashion sector. Journal of Marketing Management, 16(1–3): 223–245.

Du, Y., Deloof, M., & Jorissen, A. 2011. Active boards of directors in foreign subsidiaries. Corporate Governance: An International Review, 19(2): 153–168.

Du, Y., Deloof, M., & Jorissen, A. 2015. The roles of subsidiary boards in multinational enterprises. Journal of International Management, 21(3): 169–181.

Dunning, J. H. 2001. The eclectic (OLI) paradigm of international production: Past, present and future. International Journal of the Economics of Business, 8(2): 173–190.

Duran, P., Kammerlander, N., Van Essen, M., & Zellweger, T. 2016. Doing more with less: Innovation input and output in family firms. Academy of Management Journal, 59(4): 1224–1264.

Eisenhardt, K. M. 1998. Agency theory: An assessment and review. Academy of Management Review, 14(1): 57–74.

Elger, T., & Smith, C. 2005. Assembling work: Remaking factory regimes in Japanese multinationals in Britain . Oxford: Oxford University Press.

Ellis, J. A., Moeller, S. B., Schlingemann, F. P., & Stulz, R. M. 2017. Portable country governance and cross-border acquisitions. Journal of International Business Studies, 48(2): 148–173.

Equilar. 2017. Corporate governance outlook 2018. December 2017. Available at: https://www.hoganlovells.com/~/media/hogan-lovells/pdf/select-2017/equilar-corporate_governance_outlook_dec_2017.pdf . Accessed 20 Dec 2018.

Fainshmidt, S., Judge, W. Q., Aguilera, R. V., & Smith, A. 2018. Varieties of institutional systems: A contextual taxonomy of understudied countries. Journal of World Business, 53(3): 307–322.

Fama, E. F., & Jensen, M. C. 1983. Separation of ownership and control. The Journal of Law and Economics, 26(2): 301–325.

Fernández, Z., & Nieto, M. J. 2006. Impact of ownership on the international involvement of SMEs. Journal of International Business Studies, 37(3): 340–351.

Ferner, A., & Quintanilla, J. 1998. Multinationals, national business systems and HRM: The enduring influence of national identity or a process of ‘Anglo-Saxonization’. International Journal of Human Resource Management, 9(4): 710–731.

Ferner, A., Quintanilla, J., & Varul, M. Z. 2001. Country-of-origin effects, host-country effects, and the management of HR in multinationals: German companies in Britain and Spain. Journal of World Business, 36(2): 107–127.

Fey, C. F., & Furu, P. 2008. Top management incentive compensation and knowledge sharing in multinational corporations. Strategic Management Journal, 29(12): 1301–1323.

Filatotchev, I., Dyomina, N., Wright, M., & Buck, T. 2001. Strategic choices, export orientation and corporate governance in privatized firms in Russia, Ukraine and Belarus: Theory and empirical evidence. Journal of International Business Studies, 32(4): 853–871.

Filatotchev, I., Jackson, G., & Nakajima, C. 2013. Corporate governance and national institutions: A review and emerging research agenda. Asia Pacific Journal of Management, 30(4): 965–986.

Filatotchev, I., & Nakajima, C. 2010. Internal and external corporate governance: An interface between an organization and its environment. British Journal of Management, 21(3): 591–606.

Filatotchev, I., Poulsen, A., & Bell, R. G. 2018. Corporate governance of a multinational enterprise: Firm, industry and institutional perspectives. Journal of Corporate Finance . https://doi.org/10.1016/j.jcorpfin.2018.02.004 .

Article   Google Scholar  

Filatotchev, I., Stephan, J., & Jindra, B. 2008. Ownership structure, strategic controls and export intensity of foreign-invested firms in transition economies. Journal of International Business Studies, 39(7): 1133–1148.

Filatotchev, I., Strange, R., Piesse, J., & Lien, Y. C. 2007. FDI by firms from newly industrialised economies in emerging markets: Corporate governance, entry mode and location. Journal of International Business Studies, 38(4): 556–572.

Filatotchev, I., & Wright, M. 2011. Agency perspectives on corporate governance of multinational enterprises. Journal of Management Studies, 48(2): 471–486.

Fiss, P. C., & Zajac, E. J. 2004. The diffusion of ideas over contested terrain: The (non) adoption of a shareholder value orientation among German firms. Administrative Science Quarterly, 49(4): 501–534.

Forbes, D. P., & Milliken, F. J. 1999. Cognition and corporate governance: Understanding boards of directors as strategic decision-making groups. Academy of Management Review, 24(3): 489–505.

George, G., Wiklund, J., & Zahra, S. A. 2005. Ownership and the internationalization of small firms. Journal of Management, 31(2): 210–233.

Geppert, M., & Matten, D. 2006. Institutional influences on manufacturing organization in multinational corporations: The ‘cherrypicking’ approach. Organization Studies, 27(4): 491–515.

Geppert, M., Williams, K., & Matten, D. 2003. The social construction of contextual rationalities in MNCs: An Anglo-German comparison of subsidiary choice. Journal of Management Studies, 40(3): 617–641.

Grøgaard, B., Rygh, A. & Benito, G. R. G. (in press. Bringing corporate governance into internalization theory: State ownership and foreign entry strategies. Journal of International Business Studies .

Grøgaard, B., & Verbeke, A. 2012. Twenty key hypotheses that make internalization theory the general theory of international strategic management. In A. Verbeke & H. Merchant (Eds.), Handbook of research in international strategic management (pp. 7–30). Cheltenham: Edward Elgar Publishing.

Grosman, A., Aguilera, R. V., & Wright, M. 2018. Lost in translation? Corporate governance, independent boards and blockholder appropriation. Journal of World Business . https://doi.org/10.1016/j.jwb.2018.09.001 .

Grosman, A., Okhmatovskiy, I., & Wright, M. 2016. State control and corporate governance in transition economies: 25 years on from 1989. Corporate Governance: An International Review, 24(3): 200–221.

Gugler, P. 2017. Emerging countries’ country-specific advantages (CSAs) and competitiveness of emerging market multinational enterprises (EMNEs. Competitiveness Review, 27(3): 194–207.

Hall, P., & Soskice, D. 2001. Varieties of capitalism. The institutional foundations of comparative advantage . Oxford: Oxford University Press.

Hambrick, D. C. 2007. Upper echelons theory: An update. Academy of Management Review, 32(2): 334–343.

Hambrick, D. C., & Mason, P. A. 1984. Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2): 193–206.

Hambrick, D. C., Werder, A. V., & Zajac, E. J. 2008. New directions in corporate governance research. Organization Science, 19(3): 381–385.

Haveman, H. A., Jia, N., Shi, J., & Wang, Y. 2017. The dynamics of political embeddedness in China. Administrative Science Quarterly, 62(1): 67–104.

Haxhi, I., & Aguilera, R. V. 2017. An institutional configurational approach to cross-national diversity in corporate governance. Journal of Management Studies, 54(3): 261–303.

Haxhi, I., & Van Ees, H. 2010. Explaining diversity in the worldwide diffusion of codes of good governance. Journal of International Business Studies, 41(4): 710–726.

Haxhi, I., van Ees, H., & Sorge, A. 2013. A political perspective on business elites and institutional embeddedness in the UK code-issuing process. Corporate Governance: An International Review., 21(6): 535–546.

Hennart, J. F. 2009. Down with MNE-centric theories! Market entry and expansion as the bundling of MNE and local assets. Journal of International Business Studies, 40(9): 1432–1454.

Hennart, J. F., Majocchi, A., & Forlani, E. 2017. The myth of the stay-at-home family firm: How family-managed SMEs can overcome their internationalization limitations. Journal of International Business Studies . https://doi.org/10.1057/s41267-017-0091-y .

Herrmann, P., & Datta, D. K. 2005. Relationships between top management team characteristics and international diversification: An empirical investigation. British Journal of Management, 16(1): 69–78.

Hoenen, A. K., & Kostova, T. 2015. Utilizing the broader agency perspective for studying headquarters—Subsidiary relations in multinational companies. Journal of International Business Studies, 46(1): 104–113.

Hoskisson, R. E., Wright, M., Filatotchev, I., & Peng, M. W. 2013. Emerging multinationals from mid-range economies: The influence of institutions and factor markets. Journal of Management Studies, 50(7): 1295–1321.

Jackson, G., & Deeg, R. 2008. Comparing capitalisms: Understanding institutional diversity and its implications for international business. Journal of International Business Studies, 39(4): 540–561.

Jackson, G., & Strange, R. 2008. Why does corporate governance matter for international business? In R. Strange & G. Jackson (Eds.), Corporate governance and international business: Strategy, performance, and institutional Change (pp. 1–14). Basingstoke: Palgrave Macmillan.

Jensen, M. C., & Murphy, K. J. 1990. Performance pay and top-management incentives. Journal of Political Economy, 98(2): 225–264.

Judge, W., Li, S., & Pinsker, R. 2010. National adoption of international accounting standards: An institutional perspective. Corporate Governance: An International Review, 18(3): 161–174.

Kano, L. 2018. Global value chain governance: A relational perspective. Journal of International Business Studies, 49(6): 684–705.

Khanna, T., & Palepu, K. 1997. Why focused strategies may be wrong for emerging markets. Harvard Business Review, 75(4): 3–10.

Kiel, G. C., Hendry, K., & Nicholson, G. J. 2006. Corporate governance options for the local subsidiaries of multinational enterprises. Corporate Governance: An International Review, 14(6): 568–576.

Kim, B., Prescott, J. E., & Kim, S. M. 2005. Differentiated governance of foreign subsidiaries in transnational corporations: An agency theory perspective. Journal of International Management, 11(1): 43–66.

Kirca, A. H., Hult, G. T. M., Deligonul, S., Perryy, M. Z., & Cavusgil, S. T. 2012. A multilevel examination of the drivers of firm multinationality: A meta-analysis. Journal of Management, 38(2): 502–530.

Knutsen, C. H., Rygh, A., & Hveem, H. 2011. Does state ownership matter? Institutions’ effect on foreign direct investment revisited. Business and Politics, 13(1): 1–33.

Kontinen, T., & Ojala, A. 2010. The internationalization of family business: A review of extant research. Journal of Family Business Strategy, 1(2): 97–107.

Kostova, T. 1999. Transnational transfer of strategic organizational practices: A contextual perspective. Academy of Management Review, 24(2): 308–324.

Kostova, T., & Marano, V. 2019. Institutional theory perspectives on emerging economies. In K. Meyer & R. Grosse (Eds.), Oxford handbook on management in emerging markets . Oxford: Oxford University Press. https://doi.org/10.1093/oxfordhb/9780190683948.001.0001 .

Kostova, T., Marano, V., & Tallman, S. 2016. Headquarters–subsidiary relationships in MNCs: Fifty years of evolving research. Journal of World Business, 51(1): 176–184.

Kostova, T., Nell, P. C., & Hoenen, A. K. 2018. Understanding agency problems in headquarters–subsidiary relationships in multinational corporations: A contextualized model. Journal of Management, 44(7): 2611–2637.

Kostova, T., Roth, K., & Dacin, M. T. 2008. Institutional theory in the study of multinational corporations: A critique and new directions. Academy of Management Review, 33(4): 994–1006.

Kriger, M. P. 1988. The increasing role of subsidiary boards in MNCs: An empirical study. Strategic Management Journal, 9(4): 347–360.

Kriger, M. P., & Rich, P. J. J. 1987. Strategic governance: Why and how MNCs are using boards of directors in foreign subsidiaries. Columbia Journal of World Business, 22(4): 39–46.

Kristensen, P. H., & Zeitlin, J. 2005. Local players in global games: The strategic constitution of a multinational corporation . Oxford: Oxford University Press.

La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. 1999. Corporate ownership around the world. The Journal of Finance, 54(2): 471–517.

Landini, F., & Pagano, U. 2018. Stakeholders’ conflicts and corporate assets: An institutional meta-complementarities approach. Socio-Economic Review . https://doi.org/10.1093/ser/mwy017 .

Leksell, L., & Lindgren, U. 1982. The board of directors in foreign subsidiaries. Journal of International Business Studies, 13(1): 27–38.

Leuz, C., & Wysocki, P. D. 2016. The economics of disclosure and financial reporting regulation: Evidence and suggestions for future research. Journal of Accounting Research, 54(2): 525–622.

Licht, A. 2003. Cross-listing and corporate governance: Bonding or avoiding? Chicago Journal of International Law, 4(1): 141–163.

Lien, Y.-C., Piesse, J., Strange, R., & Filatotchev, I. 2005. The role of corporate governance in FDI decisions: Evidence from Taiwan. International Business Review, 14(1): 739–763.

Lu, J., Xu, B., & Liu, X. 2009. The effects of corporate governance and institutional environments on export behaviour in emerging economies. Management International Review, 49(4): 455–478.

Luo, Y. 2005a. Corporate governance and accountability in multinational enterprises: Concepts and agenda. Journal of International Management, 11(1): 1–18.

Luo, Y. 2005b. How does globalization affect corporate governance and accountability? A perspective from MNEs. Journal of International Management, 11(1): 19–41.

Majocchi, A., & Strange, R. 2012. International diversification: the impact of ownership structure, the market for corporate control and board independence. Management International Review, 52(6): 879–900.

Mallin, C. A. 2006. International corporate governance: A case study approach . Northampton, MA: Edward Elgar.

March, J. G., & Simon, H. A. 1958. Organizations . New York: Wiley.

Mariotti, S., & Marzano, R. 2019. Varieties of capitalism and the internationalization of state-owned enterprises. Journal of International Business Studies . https://doi.org/10.1057/s41267-018-00208-2 .

Martinez, J. I., & Jarillo, J. C. 1989. The evolution of research on coordination mechanisms in multinational corporations. Journal of International Business Studies, 20(3): 489–514.

Miletkov, M., Poulsen, A., & Wintoki, M. B. 2017. Foreign independent directors and the quality of legal institutions. Journal of International Business Studies, 48(2): 267–292.

Morgan, G. 2012. International business, multinationals and national business systems. In G. Wood & M. Demirbag (Eds.), Handbook of institutional approaches to international business (pp. 18–41). Northampton, MA: Edward Elgar Publishing.

Morgan, G., & Kristensen, P. H. 2006. The contested space of multinationals: Varieties of institutionalism, varieties of capitalism. Human Relations, 59(11): 1467–1490.

Morgan, G., Kristensen, P. H., & Whitley, R. 2001. The multinational firm, organizing across institutional and national divides . Oxford: Oxford University Press.

Muller, M. 1998. Human resource and industrial relations practices of UK and US multinationals in Germany. International Journal of Human Resource Management, 9(4): 732–749.

Musacchio, A., Lazzarini, S., & Aguilera, R. V. 2015. New varieties of state capitalism: Strategic and governance implications. Academy of Management Perspectives, 29(1): 115–131.

Musteen, M., Datta, D. K., & Herrmann, P. 2009. Ownership structure and CEO compensation: Implications for the choice of foreign market entry modes. Journal of International Business Studies, 40(2): 321–338.

Nam, J., Liu, X., Lioliou, E., & Jeong, M. 2018. Do board directors affect the export propensity and export performance of Korean firms? A resource dependence perspective. International Business Review, 27(1): 269–280.

Narula, R., & Verbeke, A. 2015. Making internalization theory good for practice: The essence of Alan Rugman’s contributions to international business. Journal of World Business, 50(4): 612–622.

Nguyen, Q. T., & Rugman, A. M. 2015. Internal equity financing and the performance of multinational subsidiaries in emerging economies. Journal of International Business Studies, 46(4): 468–490.

Nielsen, S. 2010. Top management team diversity: A review of theories and methodologies. International Journal of Management Reviews, 12(3): 301–316.

Nielsen, B. B., & Nielsen, S. 2011. The role of top management team international orientation in international strategic decision-making: The choice of foreign entry mode. Journal of World Business, 46(2): 185–193.

Pauly, L. W., & Reich, S. 1997. National structures and multinational corporate behavior: Enduring differences in the age of globalization. International Organization, 51(1): 1–30.

Pedersen, T., & Thomsen, S. 1999. Business systems and corporate governance. International Studies of Management and Organization, 29(2): 43–59.

Pfeffer, J., & Salancik, G. R. 1978. The external control of organizations: A resource dependence approach . New York: Harper and Row.

Pongelli, C., Caroli, M. G., & Cucculelli, M. 2016. Family business going abroad: The effect of family ownership on foreign market entry mode decisions. Small Business Economics, 47(3): 787–801.

Pukall, T. J., & Calabrò, A. 2014. The internationalization of family firms: A critical review and integrative model. Family Business Review, 27(2): 103–125.

Qi, Y., Roth, L., & Wald, J. 2017. Creditor protection laws, debt financing, and corporate investment over the business cycle. Journal of International Business Studies, 48(4): 477–497.

Roe, M. J. 2003. Political determinants of corporate governance: Political context, corporate impact . New York: Oxford University Press.

Roth, K., & Morrison, A. J. 1992. Implementing global strategy: Characteristics of global subsidiary mandates. Journal of International Business Studies, 23(4): 715–735.

Roth, K., & O’Donnell, S. 1996. Foreign subsidiary compensation strategy: An agency theory perspective. Academy of Management Journal, 39(3): 678–703.

Rugman, A. M. 1981. Inside the multinationals: The economics of internal markets . New York: Columbia University Press.

Rugman, A. M., & Verbeke, A. 1992. A note on the transnational solution and the transaction cost theory of multinational strategic management. Journal of International Business Studies, 23(4): 761–771.

Rugman, A. M., & Verbeke, A. 2008. Internalization theory and its impact on the field of international business. In J. J. Boddewyn (Ed.), International business scholarship: AIB fellows on the first 50 years and beyond (pp. 155–174). Somerville, MA: Emerald.

Rygh, A., & Benito, G. R. G. 2018. Capital structure of foreign direct investments: A transaction cost analysis. Management International Review, 58(3): 389–411.

Sanchez-Bueno, M., & Usero, B. 2014. How may the nature of family firms explain the decisions concerning international diversification? Journal of Business Research, 67(7): 1311–1320.

Sanders, W. G., & Carpenter, M. A. 1998. Internationalization and firm governance: The roles of CEO compensation, top team composition, and board structure. Academy of Management Journal, 41(2): 158–178.

Sanders, W. G., & Tuschke, A. 2007. The adoption of institutionally contested organizational practices: The emergence of stock option pay in Germany. Academy of Management Journal, 50(1): 33–56.

Schiehll, E., Ahmadjian, C., & Filatotchev, I. 2014. National governance bundles perspective: Understanding the diversity of corporate governance practices at the firm and country levels. Corporate Governance: An International Review, 22(3): 179–184.

Shleifer, A., & Vishny, R. 1997. A survey of corporate governance. Journal of Finance, 52(2): 737–783.

Siegel, J. 2009. Is there a better commitment mechanism than cross-listings for emerging-economy firms? Evidence from Mexico. Journal of International Business Studies, 40(7): 1171–1191.

Singh, D., & Gaur, A. S. 2013. Governance Structure, innovation and internationalization: Evidence from India. Journal of International Management, 19(3): 300–309.

Slangen, A., & Hennart, J. F. 2007. Greenfield or acquisition entry: A review of the empirical foreign establishment mode literature. Journal of International Management, 13(4): 403–429.

Strange, R., Filatotchev, I., Buck, T., & Wright, M. 2009. Corporate governance and international business. Management International Review, 49(4): 395–407.

Streeck, W. 2010. Taking capitalism seriously: Towards an institutionalist approach to contemporary political economy. Socio-Economic Review, 9(1): 137–167.

Sugathan, A., & George, R. 2015. The influence of governance infrastructure and corporate governance on profit shifting. Journal of International Business Studies, 46(8): 886–916.

Takahashi, H., & Yamada, K. 2015. IPOs, growth, and the impact of relaxing listing requirements. Journal of Banking and Finance, 59: 505–519.

Terjesen, S., Aguilera, R. V., & Lorenz, R. 2015. Legislating a woman’s seat on the board: Institutional factors driving gender quotas for boards of directors. Journal of Business Ethics, 128(2): 233–251.

Thomsen, S., & Pedersen, T. 2000. Ownership structure and economic performance in the largest European companies. Strategic Management Journal, 21(6): 689–705.

Tihanyi, L., Aguilera, R. V., Heugens, P., van Essen, M., Sauerwald, S., Duran, P., Turturea, R. (in press. State ownership and political connections. Journal of Management. https://doi.org/10.1177/0149206318822113 .

Tihanyi, L., Ellstrand, A. E., Daily, C. M., & Dalton, D. R. 2000. Composition of the top management team and firm international diversification. Journal of Management, 26(6): 1157–1177.

Tihanyi, L., Hoskisson, R. E., Johnson, R. A., & Wan, W. P. 2009. Technological competence and international diversification. Management International Review, 49(4): 409–431.

Tihanyi, L., Johnson, R. A., Hoskisson, R. E., & Hitt, M. A. 2003. Institutional ownership differences and international diversification: The effects of boards of directors and technological opportunity. Academy of Management Journal, 46(2): 195–211.

Tomassen, S., & Benito, G. R. G. 2009. The costs of governance in international companies. International Business Review, 18(3): 292–304.

Tomassen, S., Benito, G. R. G., & Lunnan, R. 2012. Governance costs in foreign direct investments: A MNC headquarters challenge. Journal of International Management, 18(3): 233–246.

Tranfield, D., Denyer, D., & Smart, P. 2003. Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British Journal of Management, 14(3): 207–222.

Tushman, M. L., & Nadler, D. A. 1978. Information processing as an integrating concept in organizational design. Academy of Management Review, 3(3): 613–624.

Van Ees, H., Gabrielsson, J., & Huse, M. 2009. Toward a behavioral theory of boards and corporate governance. Corporate Governance: An International Review, 17(3): 307–319.

Verbeke, A., & Greidanus, N. S. 2009. The end of the opportunism vs trust debate: Bounded reliability as a new envelope concept in research on MNE governance. Journal of International Business Studies, 40(9): 1471–1495.

Verbeke, A., & Kano, L. 2012. The transaction cost economics theory of the family firm: Family-based human asset specificity and the bifurcation bias. Entrepreneurship Theory and Practice, 34(6): 1173–1182.

Verbeke, A., & Kano, L. 2015. The new internalization theory and multinational enterprises from emerging economies: A business history perspective. Business History Review, 89(3): 415–445.

Verbeke, A., & Kano, L. 2016. An internalization theory perspective on the global and regional strategies of multinational enterprises. Journal of World Business, 51(1): 83–92.

Walgenbach, P., Drori, G. S., & Höllerer, M. A. 2017. Between local mooring and global orientation: A neo-institutional theory perspective on the contemporary multinational corporation. In C. Dörenbächer & M. Geppert (Eds.), Multinational corporations and organization theory: Post millennium perspectives (Vol. 49, pp. 99–125. Somerville, MA: Emerald.

Wang, S. L., Luo, Y., Lu, X., Sun, J., & Maksimov, V. 2014. Autonomy delegation to foreign subsidiaries: An enabling mechanism for emerging-market multinationals. Journal of International Business Studies, 45(2): 111–130.

Wernerfelt, B. 1984. A resource-based view of the firm. Strategic Management Journal, 5(2): 171–180.

Whitley, R. 1992. Business systems in East Asia: Firms, markets and societies . London: Sage.

Whitley, R. 1999. Divergent capitalisms: The social structuring and change of business systems . Oxford: Oxford University Press.

Whitley, R., Morgan, G., Kelly, W., & Sharpe, D. 2003. The changing Japanese multinational: Application, adaptation and learning in car manufacturing and financial services. Journal of Management Studies, 40(3): 643–672.

Williamson, O. E. 1988. The logic of economic organization. Journal of Law, Economics and Organization, 4(1): 65–93.

Wu, N., & Tihanyi, L. 2013. Corporate governance, multinational firms, and internationalization. In M. Wright, D. S. Siegel, K. Keasey, & I. Filatotchev (Eds.), Handbook of corporate governance (pp. 449–464). Oxford: Oxford University Press.

Yang, W., & Meyer, K. E. 2018. How does ownership influence business growth? A competitive dynamics perspective. International Business Review . https://doi.org/10.1016/j.ibusrev.2018.02.009 .

Young Baek, H. 2003. Parent-affiliate agency conflicts and foreign entry mode choice. Multinational Business Review, 11(2): 75–98.

Young, M. N., Peng, M. W., Ahlstrom, D., Bruton, G. D., & Jiang, Y. 2008. Corporate governance in emerging economies: A review of the principal–principal perspective. Journal of Management Studies, 45(1): 196–220.

Zaheer, S. 1995. Overcoming the liability of foreignness. Academy of Management Journal, 38(2): 341–363.

Download references

Acknowledgements

The authors gratefully acknowledge comments and suggestions from Professor Benito (Editor) and three fantastic anonymous referees, conference participants at the Academy of Management’s 2018 Annual Meeting in Chicago, the International Corporate Governance Society’s 2018 Annual Meeting in Shanghai, and the 2018 Strategic Management Society’s Special Conference in Oslo. All errors remain ours.

Author information

Authors and affiliations.

International Business and Strategy, D’Amore-McKim School of Business, Northeastern University, 360 Huntington Avenue, Boston, MA, 02115, USA

Ruth V. Aguilera & Valentina Marano

ESADE Business School, Ramon Llull University, Barcelona, Spain

Ruth V. Aguilera

Amsterdam Business School, University of Amsterdam, Postbus 15953, 1001 NL, Amsterdam, The Netherlands

You can also search for this author in PubMed   Google Scholar

Corresponding author

Correspondence to Ruth V. Aguilera .

Additional information

Publisher's note.

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Accepted by Gabriel Benito, Consulting Editor, 2 March 2019. This article has been with the authors for three revisions.

See Table  3 .

Rights and permissions

Reprints and permissions

About this article

Aguilera, R.V., Marano, V. & Haxhi, I. International corporate governance: A review and opportunities for future research. J Int Bus Stud 50 , 457–498 (2019). https://doi.org/10.1057/s41267-019-00232-w

Download citation

Received : 17 December 2017

Revised : 20 February 2019

Accepted : 02 March 2019

Published : 03 April 2019

Issue Date : 01 June 2019

DOI : https://doi.org/10.1057/s41267-019-00232-w

Share this article

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• multinational corporations (MNCs) and enterprises (MNEs)
• corporate governance
• comparative organizational studies
• headquarters–subsidiary roles and relations
• ownership/control structures
• international corporate governance

Advertisement

• Find a journal
• Publish with us
• Track your research