International Convergence of Corporate Governance: Concepts and Reality

Abstract

This paper sheds light on some critical questions about international convergence of corporate governance: what are the different governance models prevailing in the different countries around the world and why? Is there any “best” corporate governance mode? If so, how the countries with different models are moving towards developing the optimum model and is there any convergence? What are the major factors enhances the convergence in corporate governance? This study finds that convergence in corporate governance is taking place due to the reasons related to the globalization of financial and product markets, an increasing harmonization and propinquity of legal and institutional norms and a more open circulation of and attitude towards foreign ideas.