Business Ethics and Corporate Governance, Second Edition

CORPORATE GOVERNANCE UNDER LIMITED COMPETITION

The influence of competition on the practice of corporate governance can be gauged properly if we look at the risks associated with markets where competition is restricted. While there is an increasing liberalization of markets for goods and services in recent times in several erstwhile socialist countries and mixed economies like India, the need for corporate control is generally overlooked. Regulatory barriers and firm-level practices have tended to limit the scope of competition in takeovers, disinvestments and privatization, both in industrial and developing countries. In more advanced markets, it was found that as regulatory barriers were imposed on corporate control transactions, managerial ...