How are various factors of production affected by global
competition? Do we manage people any differently in a
globally competitive environment?

Answer Posted / zohaib

Abstract
This paper addresses how the global activities undertaken
by multinational enterprises (MNEs) in international
settings impact corporate governance mechanisms and
accountability systems. International corporate governance
and accountability research, whether from a political
science, economics, finance, or accounting perspective, has
thus far predominantly focused on the comparison of
corporate governance schemes in different countries and on
the investigation of institutional parameters that
determine these schemes. Straying from this line of
inquiry, this article discusses how globalization at the
firm level affects governance and accountability systems at
parent- and subsidiary-levels. It emphasizes how an MNE's
globalization attributes such as globalization scale,
foreign adaptation, global competition, and international
experience influence the design of governance mechanisms
such as board size, board composition, executive
compensation, market discipline, interlocking directorate,
ownership concentration, duality and inbreeding, as well as
the design of accountability systems such as accounting
information, auditing standards, and financial and non-
financial disclosures. This article bases its conjectures
on information processing and agency theories.

Is This Answer Correct ?    34 Yes 15 No



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