Edited by Thomas Clarke, UTS Business School, University of Technology, Sydney, Australia, Wafa Khlif, Department of Management Control, Accounting and Auditing, TBS Business School, Barcelona, Spain and Coral Ingley, Faculty of Business and Law, Auckland University of Technology, New Zealand

• ContentsIntroduction to the ElgarEncyclopedia of Corporate Governance 1Thomas Clarke, Wafa Khlif,Coral IngleyPART 1 PHILOSOPHICALPERSPECTIVES ONCORPORATE GOVERNANCE1 Adam Smith: moral sentiments 12Thomas Clarke2 Karl Marx: the labourtheory of value and exploitation 15Thomas Clarke3 John Stuart Mill:utilitarianism and theeconomic conditions of happiness 18Thomas Clarke4 Do private vices bringpublic benefit? Mandevilleand the foundations ofmodern capitalism 20Wafa Khlif5 Capitalism and Deleuze 22Finn Janning6 Resisting thefinancialization of corporategovernance with Deleuzeand Guattari 23Charles Barthold7 Enriqué Dussel’sphilosophy of liberation:moving beyond colonialEurocentrism 25Wafa KhlifPART 2 ORIGINS AND HISTORY OFCORPORATE GOVERNANCE8 Corporate governance 28Yuri Biondi9 The genesis of thecorporation: The 17th- and18th-century East India Companies 30Thomas Clarke10 Berle and Means and themodern corporation asa new public institution(1850s–1930s) 33Olivier Weinstein11 The evolution of corporategovernance 35Bob Tricker12 Managerial capitalism(1940s–1970s) 38Olivier Weinstein13 The countervailing powerof the New Deal, and therise of the financialisedcorporation and neo-liberalism 41John Cioffi14 The new contractualeconomic theory of the firm(1970s–2010s) 45Olivier Weinstein15 The displacement ofmanagerial capitalism byfinancial capitalism (2010s–2020s) 48Olivier WeinsteinPART 3 CHALLENGINGNEO-LIBERALISM16 Neoliberal resilience 52Abby Innes17 The financialisation ofcorporate governance 54Thomas Clarke18 Challenging neoliberalismin the face of global complexity 57Wafa Khlif, Thomas Clarke, LotfiKaroui, Konan A. Seny Kan,Coral IngleyPART 4 CRITICAL THEORIES ANDMETHODOLOGIES19 Shareholder primacy andlong-term corporate investment 60Lynn Stout20 The myths of shareholder primacy 63Thomas Clarke21 Social approaches tocorporate governance 66Thomas Donaldson22 Team production theory ofcorporate law 68Margaret M. Blair23 Extended team production theory 69Morten Huse24 Stakeholder theory 70Thomas Clarke25 A critique of stakeholder theory 73Charles Blattberg, Dylan Scudder26 Behavioural theory ofboards and governance 74Morten Huse27 Multi-level corporate governance 75Konan A. Seny Kan28 Resource dependencetheory: a politicalunderstanding of corporategovernance 77Werner Nienhüser29 Sustainability and corporategovernance 78Jeroen Veldman30 Methodologicalperspectives in corporategovernance 80Konan A. Seny Kan, Wafa Khlif,Coral Ingley, Lotfi Karoui31 Integrating theoreticalperspectives on corporategovernance 82Lotfi Karoui, Coral Ingley, Wafa KhlifPART 5 GOVERNANCE REGIMES32 Anglo-American corporategovernance 85Thomas Clarke33 European corporategovernance:relationship-based approaches 91Thomas Clarke34 Asia-Pacificcorporate governance:family-controlled business networks 95Thomas Clarke35 Corporate governance in Italy 100Alessandro Zattoni36 Corporate governance inCentral and Eastern Europebetween 1945 and 1990 101Rainhart Lang, Miklos Dobak,Thomas Steger37 Corporate governance inCentral and Eastern Europeafter 1990 103Thomas Steger, Rainhart Lang,Miklos Dobak38 Neopatrimonial (corporate)governance 105Danson Kimani, TeeroovenSoobaroyen39 Director independence indeveloped and developingeconomies 107Coral Ingley40 Structural informationasymmetry, localinstitutions and corporategovernance in Africa 113Charles C. Okeahalam41 Corporate governanceand boards in Africa: theUbuntu model? 115Emmanuel Adegbite, Folajimi AshiruPART 6 FINANCE AND CORPORATEGOVERNANCE42 Ownership and corporategovernance 118Ludo Van der Heyden43 Corporate governance andfinance: investment funds 120Coral Ingley44 The global growth of equitymarkets 125Thomas Clarke45 Investor voting andshareholder rights 128Coral Ingley46 Insider trading 133Marc Goergen47 Pyramidal groups 134Alessandro Zattoni48 Corporate governance andfinance aspects: dividendpolicy, bond yields, and risk-taking 135Coral Ingley49 Dividend policy 139Marc Goergen50 The international premiumfor corporate governance 140Thomas Clarke51 Investors as stewards:a sustainable symbiosis? 143Hans van Ees, Niels Hermes52 Purpose and paradigm shiftsin banking governance 145Nihel Chabrak, María Luisa PajueloPART 7 ACCOUNTING ANDCORPORATE REPORTING53 Creative accounting, fraud,and international accountingscandals 148Michael J. Jones54 Accounting for inequality 149Prem Sikka55 The OECD/G20 agreementon minimum corporatetaxation: scope for fairnessor financialisation? 153Yuri Biondi56 Waves of internationalframeworks forsustainability reporting 155David Monciardini, Jukka TapioMähönen, Georgina Tsagas57 Integrity in disclosure andaccountability 160Nihel Chabrak, María Luisa Pajuelo58 ESG: overview and critique 162Coral Ingley59 ESG: reporting and greenwashing 166Coral Ingley60 Transparency in corporategovernance and ethical conduct 171Coral Ingley61 Voluntary environmentaldisclosure in anauthoritarian political context 175Coral Ingley, Wafa KhlifPART 8 LAW AND REGULATION62 The dimensions of corporatepersonality 180Lynn Stout63 Corporate moral personhood 182Matthew Lampert64 Enterprise 184Blanche Segrestin, Kevin Levillain65 Fiduciary duty 186Thomas Clarke66 Corporate governance deviance 189Ruth V. Aguilera, Siri Terjesen67 Contractual corporate governance 190Marc Goergen68 Codes of good governance 191Alessandro Zattoni69 Stewardship codes andinvestor stewardship 192Alice Klettner70 Questioning CEO-Chairseparation: a critical reviewand integrative model 193Wafa Khlif, Sami El Omari,Konan A. Seny Kan71 (Convergence of) legalcorporate perspectives 195Véronique Magnier72 The globalisation of regulation 197Thomas Clarke73 Revisiting regulatory frameworks 201Coral Ingley, Lotfi Karoui, Wafa Khlif74 A new global regulatoryarchitecture for corporategovernance? 202Thomas ClarkePART 9 STRATEGY ANDCORPORATE GOVERNANCE75 Corporate governance life cycle 206Igor Filatotchev, Steven Toms76 Corporate governance and M&As 207Xavier Castañer77 Strategic leadership by the board 210Ljiljana Erakovic78 Boards and strategy 211Alessandro Zattoni79 Value and value creation incorporate governance 212Daniel Yar Hamidi80 Ambidexterity 214Morten Huse81 Corporate governance,boards, and innovation:reviews of literature 215Coral Ingley82 Organizational legitimacy 219Martijn Boersma83 Board strategic balance:a practical theory of sportgovernance 220Lesley Ferkins, David ShilburyPART 10 FORMS OF GOVERNANCE84 Meta-organizations:evolving forms of governance 223Héloïse Berkowitz85 Entrepreneurial threshold firms 224Jonas Gabrielsson86 Corporate governance: thecase of the MondragonCooperative Group 226Hervé Grellier-Bidalun, JeanFrancois Chanlat87 Corporate governance in IPOs 228Alessandro Zattoni88 Value and value creationperspectives from researchand practice in SMEs 229Coral Ingley89 Complexity and powerdynamics in governing family firms 231Coral Ingley, Wafa Khlif90 Family firms and boardcomposition – complexity,ownership, and succession 234Wafa Khlif, Coral Ingley91 Corporate governancewithin and by the media 237Nathalie Fenton92 Whistleblowing 238Eva TsahuriduPART 11 BOARD PROCESSES ANDPERFORMANCE93 The board of statutory auditors 240Lino Cinquini, Andrea Melis94 Board roles 242Pieter-Jan Bezemer95 Theorising director taskperformance 243Stuart Farquhar96 Board role performance:opening the black box ofboard activation process 245Lotfi Karoui97 Board processes 247Alessandro Zattoni98 Board remuneration 248Coral Ingley99 Evolving perspectives onboard governance and innovation 251Coral Ingley100 Board capital 254Morten HusePART 12 LEADERSHIP IN THEBOARDROOM101 Board team leadership 256Ljiljana Erakovic102 Board dynamics 257Philip Stiles103 The chair’s leadership of the board 258Ljiljana Erakovic104 The continual rapid inflationin CEO pay in the United States 259Thomas Clarke105 Functional stupidity in theboardroom? 264Martin Blom, Mats AlvessonPART 13 BOARD DIRECTORS106 Business elites 266Sibel Yamak107 Board reforms 268Marta A. Geletkanycz108 Director independence 269Coral Ingley109 Directors’ fiduciary dutyand perspectives on sustainability 273Coral Ingley110 Digital skills ofnon-executive directors 278Michele PhillipsPART 14 DIVERSITY AND BOARD111 Diversity, equity and inclusion 281Thomas Clarke112 Diversity on boards 286Patricia Gabaldon113 Women on boards: targetsand quotas 288Ruth Sealy, Susan Vinnicombe114 Women on boards – shiftingboard behaviours 290Ruth Sealy115 Golden skirts 292Morten Huse116 Polish women on boards 293Agnieszka Slomka GolebiowskaPART 15 GLOBALISATION ANDINSTITUTIONS OFGOVERNANCE117 The meaning of globalization 295Thomas Clarke118 The deregulation of financeand the globalization ofcapital markets 297Thomas Clarke119 Globalization anddeglobalization of corporategovernance 300Thomas Clarke120 Globalization from below 304Wafa KhlifPART 16 CRISES IN GOVERNANCE121 Crisis and reform incorporate governance 307Thomas Clarke122 The Wall Street crash 1929 309Thomas Clarke123 The Asian financial crisis 1997 311Thomas Clarke124 NASDAQ/Dot.com crash 314Thomas Clarke125 The global financial crisis2007/2008 317Thomas Clarke126 The universal and pervasiveimpact of financialization 320Thomas Clarke127 Why has the COVID-19pandemic questionedcorporate governance? 322Yvon Pesqueux128 Beyond economics:revisiting governance criseswith Ibn Khaldun 323Wafa Khlif, Lotfi KarouiPART 17 CORPORATE GOVERNANCEAND SOCIETY129 From government to governance 327Antonino Palumbo130 Purpose-driven corporation 329Blanche Segrestin, Kevin Levillain131 Conceiving the purpose ofthe company 331Thomas Clarke132 The social licence to operate 335Thomas Clarke133 “Good governance” in theface of cultural differences 337Hèla Yousfi134 Innovation, growth and productivity 339Thomas Clarke135 Trust, trustworthiness andcorporate governance 342Nikolas Kirby136 Gender board quotas andsustainable development 343Morten Huse137 Human rights 344Justine Nolan138 Modern slavery 346Martijn BoersmaPART 18 DIGITAL ERA GOVERNANCE139 Digital transformation andgovernance 349Thomas Clarke140 Surveillance 353Afshin Mehrpouya141 Digital disruption and governance 355Thomas Clarke142 Smart governance 359Yvon Pesqueux143 Critique of digital disruption 361Thomas Clarke144 The governance of cyber security 364Thomas ClarkePART 19 CORPORATE SOCIALRESPONSIBILITY145 Corporate socialresponsibility andenvironmental and socialgovernance 369Thomas Clarke146 Doing the “right” thing:ethical behaviour andsustainable value creating business 373Coral Ingley147 The potential forinterlocking directorships toinfluence sustainability practices 376Coral Ingley148 Corporate tax avoidance 380Thomas ClarkePART 20 CORPORATESUSTAINABILITY149 Corporate governance ofsustainability 386Wafa Khlif, Lotfi Karoui, Coral Ingley150 The governance of sustainability 389Bobby Banerjee151 Governing for sustainability 390Coral Ingley152 The sustainability value curve 393Thomas Clarke153 Corporate governance andsustainable value creation 396Beate Sjåfjell154 Corporate climate champions 397Jasper Finkeldey155 Corporate greenwashing 399Thomas ClarkePART 21 REGENERATION OF THENATURAL WORLD156 The central role ofenvironmental justice incorporate governance 403Marcel Llavero-Pasquina, JoanMartínez-Alier157 Natural capital 406Coral Ingley158 Extinction accounting 409Jill Atkins159 Accounting care 411Jacques Richard160 Accounting for biodiversity 412Mike Jones161 Systemic sustainability ingovernance 414Wafa Khlif, Lotfi Karoui, Coral Ingley162 Innovation for sustainability 416Thomas Clarke163 Regeneration of natural capital 419Thomas Clarke

‘This Encyclopedia of Corporate Governance is an authoritative and comprehensive reference resource for corporate governance scholars around the world. With 163 entries provided by scholars from various disciplines, the text presents a balanced and convincing assessment of both the origins and consequences of agency problems, and how governance mechanisms can address them. In addition, the text includes various philosophical perspectives on corporate governance, highlights the importance of investigating corporate governance problems at various levels of analysis, and provides an overview of governance topics from the past to the current times. As a result, this is an excellent guide for students and researchers.’

Edited by Thomas Clarke, UTS Business School, University of Technology, Sydney, Australia, Wafa Khlif, Department of Management Control, Accounting and Auditing, TBS Business School, Barcelona, Spain and Coral Ingley, Faculty of Business and Law, Auckland University of Technology, New Zealand

• ContentsIntroduction to the ElgarEncyclopedia of Corporate Governance 1Thomas Clarke, Wafa Khlif,Coral IngleyPART 1 PHILOSOPHICALPERSPECTIVES ONCORPORATE GOVERNANCE1 Adam Smith: moral sentiments 12Thomas Clarke2 Karl Marx: the labourtheory of value and exploitation 15Thomas Clarke3 John Stuart Mill:utilitarianism and theeconomic conditions of happiness 18Thomas Clarke4 Do private vices bringpublic benefit? Mandevilleand the foundations ofmodern capitalism 20Wafa Khlif5 Capitalism and Deleuze 22Finn Janning6 Resisting thefinancialization of corporategovernance with Deleuzeand Guattari 23Charles Barthold7 Enriqué Dussel’sphilosophy of liberation:moving beyond colonialEurocentrism 25Wafa KhlifPART 2 ORIGINS AND HISTORY OFCORPORATE GOVERNANCE8 Corporate governance 28Yuri Biondi9 The genesis of thecorporation: The 17th- and18th-century East India Companies 30Thomas Clarke10 Berle and Means and themodern corporation asa new public institution(1850s–1930s) 33Olivier Weinstein11 The evolution of corporategovernance 35Bob Tricker12 Managerial capitalism(1940s–1970s) 38Olivier Weinstein13 The countervailing powerof the New Deal, and therise of the financialisedcorporation and neo-liberalism 41John Cioffi14 The new contractualeconomic theory of the firm(1970s–2010s) 45Olivier Weinstein15 The displacement ofmanagerial capitalism byfinancial capitalism (2010s–2020s) 48Olivier WeinsteinPART 3 CHALLENGINGNEO-LIBERALISM16 Neoliberal resilience 52Abby Innes17 The financialisation ofcorporate governance 54Thomas Clarke18 Challenging neoliberalismin the face of global complexity 57Wafa Khlif, Thomas Clarke, LotfiKaroui, Konan A. Seny Kan,Coral IngleyPART 4 CRITICAL THEORIES ANDMETHODOLOGIES19 Shareholder primacy andlong-term corporate investment 60Lynn Stout20 The myths of shareholder primacy 63Thomas Clarke21 Social approaches tocorporate governance 66Thomas Donaldson22 Team production theory ofcorporate law 68Margaret M. Blair23 Extended team production theory 69Morten Huse24 Stakeholder theory 70Thomas Clarke25 A critique of stakeholder theory 73Charles Blattberg, Dylan Scudder26 Behavioural theory ofboards and governance 74Morten Huse27 Multi-level corporate governance 75Konan A. Seny Kan28 Resource dependencetheory: a politicalunderstanding of corporategovernance 77Werner Nienhüser29 Sustainability and corporategovernance 78Jeroen Veldman30 Methodologicalperspectives in corporategovernance 80Konan A. Seny Kan, Wafa Khlif,Coral Ingley, Lotfi Karoui31 Integrating theoreticalperspectives on corporategovernance 82Lotfi Karoui, Coral Ingley, Wafa KhlifPART 5 GOVERNANCE REGIMES32 Anglo-American corporategovernance 85Thomas Clarke33 European corporategovernance:relationship-based approaches 91Thomas Clarke34 Asia-Pacificcorporate governance:family-controlled business networks 95Thomas Clarke35 Corporate governance in Italy 100Alessandro Zattoni36 Corporate governance inCentral and Eastern Europebetween 1945 and 1990 101Rainhart Lang, Miklos Dobak,Thomas Steger37 Corporate governance inCentral and Eastern Europeafter 1990 103Thomas Steger, Rainhart Lang,Miklos Dobak38 Neopatrimonial (corporate)governance 105Danson Kimani, TeeroovenSoobaroyen39 Director independence indeveloped and developingeconomies 107Coral Ingley40 Structural informationasymmetry, localinstitutions and corporategovernance in Africa 113Charles C. Okeahalam41 Corporate governanceand boards in Africa: theUbuntu model? 115Emmanuel Adegbite, Folajimi AshiruPART 6 FINANCE AND CORPORATEGOVERNANCE42 Ownership and corporategovernance 118Ludo Van der Heyden43 Corporate governance andfinance: investment funds 120Coral Ingley44 The global growth of equitymarkets 125Thomas Clarke45 Investor voting andshareholder rights 128Coral Ingley46 Insider trading 133Marc Goergen47 Pyramidal groups 134Alessandro Zattoni48 Corporate governance andfinance aspects: dividendpolicy, bond yields, and risk-taking 135Coral Ingley49 Dividend policy 139Marc Goergen50 The international premiumfor corporate governance 140Thomas Clarke51 Investors as stewards:a sustainable symbiosis? 143Hans van Ees, Niels Hermes52 Purpose and paradigm shiftsin banking governance 145Nihel Chabrak, María Luisa PajueloPART 7 ACCOUNTING ANDCORPORATE REPORTING53 Creative accounting, fraud,and international accountingscandals 148Michael J. Jones54 Accounting for inequality 149Prem Sikka55 The OECD/G20 agreementon minimum corporatetaxation: scope for fairnessor financialisation? 153Yuri Biondi56 Waves of internationalframeworks forsustainability reporting 155David Monciardini, Jukka TapioMähönen, Georgina Tsagas57 Integrity in disclosure andaccountability 160Nihel Chabrak, María Luisa Pajuelo58 ESG: overview and critique 162Coral Ingley59 ESG: reporting and greenwashing 166Coral Ingley60 Transparency in corporategovernance and ethical conduct 171Coral Ingley61 Voluntary environmentaldisclosure in anauthoritarian political context 175Coral Ingley, Wafa KhlifPART 8 LAW AND REGULATION62 The dimensions of corporatepersonality 180Lynn Stout63 Corporate moral personhood 182Matthew Lampert64 Enterprise 184Blanche Segrestin, Kevin Levillain65 Fiduciary duty 186Thomas Clarke66 Corporate governance deviance 189Ruth V. Aguilera, Siri Terjesen67 Contractual corporate governance 190Marc Goergen68 Codes of good governance 191Alessandro Zattoni69 Stewardship codes andinvestor stewardship 192Alice Klettner70 Questioning CEO-Chairseparation: a critical reviewand integrative model 193Wafa Khlif, Sami El Omari,Konan A. Seny Kan71 (Convergence of) legalcorporate perspectives 195Véronique Magnier72 The globalisation of regulation 197Thomas Clarke73 Revisiting regulatory frameworks 201Coral Ingley, Lotfi Karoui, Wafa Khlif74 A new global regulatoryarchitecture for corporategovernance? 202Thomas ClarkePART 9 STRATEGY ANDCORPORATE GOVERNANCE75 Corporate governance life cycle 206Igor Filatotchev, Steven Toms76 Corporate governance and M&As 207Xavier Castañer77 Strategic leadership by the board 210Ljiljana Erakovic78 Boards and strategy 211Alessandro Zattoni79 Value and value creation incorporate governance 212Daniel Yar Hamidi80 Ambidexterity 214Morten Huse81 Corporate governance,boards, and innovation:reviews of literature 215Coral Ingley82 Organizational legitimacy 219Martijn Boersma83 Board strategic balance:a practical theory of sportgovernance 220Lesley Ferkins, David ShilburyPART 10 FORMS OF GOVERNANCE84 Meta-organizations:evolving forms of governance 223Héloïse Berkowitz85 Entrepreneurial threshold firms 224Jonas Gabrielsson86 Corporate governance: thecase of the MondragonCooperative Group 226Hervé Grellier-Bidalun, JeanFrancois Chanlat87 Corporate governance in IPOs 228Alessandro Zattoni88 Value and value creationperspectives from researchand practice in SMEs 229Coral Ingley89 Complexity and powerdynamics in governing family firms 231Coral Ingley, Wafa Khlif90 Family firms and boardcomposition – complexity,ownership, and succession 234Wafa Khlif, Coral Ingley91 Corporate governancewithin and by the media 237Nathalie Fenton92 Whistleblowing 238Eva TsahuriduPART 11 BOARD PROCESSES ANDPERFORMANCE93 The board of statutory auditors 240Lino Cinquini, Andrea Melis94 Board roles 242Pieter-Jan Bezemer95 Theorising director taskperformance 243Stuart Farquhar96 Board role performance:opening the black box ofboard activation process 245Lotfi Karoui97 Board processes 247Alessandro Zattoni98 Board remuneration 248Coral Ingley99 Evolving perspectives onboard governance and innovation 251Coral Ingley100 Board capital 254Morten HusePART 12 LEADERSHIP IN THEBOARDROOM101 Board team leadership 256Ljiljana Erakovic102 Board dynamics 257Philip Stiles103 The chair’s leadership of the board 258Ljiljana Erakovic104 The continual rapid inflationin CEO pay in the United States 259Thomas Clarke105 Functional stupidity in theboardroom? 264Martin Blom, Mats AlvessonPART 13 BOARD DIRECTORS106 Business elites 266Sibel Yamak107 Board reforms 268Marta A. Geletkanycz108 Director independence 269Coral Ingley109 Directors’ fiduciary dutyand perspectives on sustainability 273Coral Ingley110 Digital skills ofnon-executive directors 278Michele PhillipsPART 14 DIVERSITY AND BOARD111 Diversity, equity and inclusion 281Thomas Clarke112 Diversity on boards 286Patricia Gabaldon113 Women on boards: targetsand quotas 288Ruth Sealy, Susan Vinnicombe114 Women on boards – shiftingboard behaviours 290Ruth Sealy115 Golden skirts 292Morten Huse116 Polish women on boards 293Agnieszka Slomka GolebiowskaPART 15 GLOBALISATION ANDINSTITUTIONS OFGOVERNANCE117 The meaning of globalization 295Thomas Clarke118 The deregulation of financeand the globalization ofcapital markets 297Thomas Clarke119 Globalization anddeglobalization of corporategovernance 300Thomas Clarke120 Globalization from below 304Wafa KhlifPART 16 CRISES IN GOVERNANCE121 Crisis and reform incorporate governance 307Thomas Clarke122 The Wall Street crash 1929 309Thomas Clarke123 The Asian financial crisis 1997 311Thomas Clarke124 NASDAQ/Dot.com crash 314Thomas Clarke125 The global financial crisis2007/2008 317Thomas Clarke126 The universal and pervasiveimpact of financialization 320Thomas Clarke127 Why has the COVID-19pandemic questionedcorporate governance? 322Yvon Pesqueux128 Beyond economics:revisiting governance criseswith Ibn Khaldun 323Wafa Khlif, Lotfi KarouiPART 17 CORPORATE GOVERNANCEAND SOCIETY129 From government to governance 327Antonino Palumbo130 Purpose-driven corporation 329Blanche Segrestin, Kevin Levillain131 Conceiving the purpose ofthe company 331Thomas Clarke132 The social licence to operate 335Thomas Clarke133 “Good governance” in theface of cultural differences 337Hèla Yousfi134 Innovation, growth and productivity 339Thomas Clarke135 Trust, trustworthiness andcorporate governance 342Nikolas Kirby136 Gender board quotas andsustainable development 343Morten Huse137 Human rights 344Justine Nolan138 Modern slavery 346Martijn BoersmaPART 18 DIGITAL ERA GOVERNANCE139 Digital transformation andgovernance 349Thomas Clarke140 Surveillance 353Afshin Mehrpouya141 Digital disruption and governance 355Thomas Clarke142 Smart governance 359Yvon Pesqueux143 Critique of digital disruption 361Thomas Clarke144 The governance of cyber security 364Thomas ClarkePART 19 CORPORATE SOCIALRESPONSIBILITY145 Corporate socialresponsibility andenvironmental and socialgovernance 369Thomas Clarke146 Doing the “right” thing:ethical behaviour andsustainable value creating business 373Coral Ingley147 The potential forinterlocking directorships toinfluence sustainability practices 376Coral Ingley148 Corporate tax avoidance 380Thomas ClarkePART 20 CORPORATESUSTAINABILITY149 Corporate governance ofsustainability 386Wafa Khlif, Lotfi Karoui, Coral Ingley150 The governance of sustainability 389Bobby Banerjee151 Governing for sustainability 390Coral Ingley152 The sustainability value curve 393Thomas Clarke153 Corporate governance andsustainable value creation 396Beate Sjåfjell154 Corporate climate champions 397Jasper Finkeldey155 Corporate greenwashing 399Thomas ClarkePART 21 REGENERATION OF THENATURAL WORLD156 The central role ofenvironmental justice incorporate governance 403Marcel Llavero-Pasquina, JoanMartínez-Alier157 Natural capital 406Coral Ingley158 Extinction accounting 409Jill Atkins159 Accounting care 411Jacques Richard160 Accounting for biodiversity 412Mike Jones161 Systemic sustainability ingovernance 414Wafa Khlif, Lotfi Karoui, Coral Ingley162 Innovation for sustainability 416Thomas Clarke163 Regeneration of natural capital 419Thomas Clarke

‘This Encyclopedia of Corporate Governance is an authoritative and comprehensive reference resource for corporate governance scholars around the world. With 163 entries provided by scholars from various disciplines, the text presents a balanced and convincing assessment of both the origins and consequences of agency problems, and how governance mechanisms can address them. In addition, the text includes various philosophical perspectives on corporate governance, highlights the importance of investigating corporate governance problems at various levels of analysis, and provides an overview of governance topics from the past to the current times. As a result, this is an excellent guide for students and researchers.’

Edited by Thomas Clarke, UTS Business School, University of Technology, Sydney, Australia, Wafa Khlif, Department of Management Control, Accounting and Auditing, TBS Business School, Barcelona, Spain and Coral Ingley, Faculty of Business and Law, Auckland University of Technology, New Zealand

• ContentsIntroduction to the ElgarEncyclopedia of Corporate Governance 1Thomas Clarke, Wafa Khlif,Coral IngleyPART 1 PHILOSOPHICALPERSPECTIVES ONCORPORATE GOVERNANCE1 Adam Smith: moral sentiments 12Thomas Clarke2 Karl Marx: the labourtheory of value and exploitation 15Thomas Clarke3 John Stuart Mill:utilitarianism and theeconomic conditions of happiness 18Thomas Clarke4 Do private vices bringpublic benefit? Mandevilleand the foundations ofmodern capitalism 20Wafa Khlif5 Capitalism and Deleuze 22Finn Janning6 Resisting thefinancialization of corporategovernance with Deleuzeand Guattari 23Charles Barthold7 Enriqué Dussel’sphilosophy of liberation:moving beyond colonialEurocentrism 25Wafa KhlifPART 2 ORIGINS AND HISTORY OFCORPORATE GOVERNANCE8 Corporate governance 28Yuri Biondi9 The genesis of thecorporation: The 17th- and18th-century East India Companies 30Thomas Clarke10 Berle and Means and themodern corporation asa new public institution(1850s–1930s) 33Olivier Weinstein11 The evolution of corporategovernance 35Bob Tricker12 Managerial capitalism(1940s–1970s) 38Olivier Weinstein13 The countervailing powerof the New Deal, and therise of the financialisedcorporation and neo-liberalism 41John Cioffi14 The new contractualeconomic theory of the firm(1970s–2010s) 45Olivier Weinstein15 The displacement ofmanagerial capitalism byfinancial capitalism (2010s–2020s) 48Olivier WeinsteinPART 3 CHALLENGINGNEO-LIBERALISM16 Neoliberal resilience 52Abby Innes17 The financialisation ofcorporate governance 54Thomas Clarke18 Challenging neoliberalismin the face of global complexity 57Wafa Khlif, Thomas Clarke, LotfiKaroui, Konan A. Seny Kan,Coral IngleyPART 4 CRITICAL THEORIES ANDMETHODOLOGIES19 Shareholder primacy andlong-term corporate investment 60Lynn Stout20 The myths of shareholder primacy 63Thomas Clarke21 Social approaches tocorporate governance 66Thomas Donaldson22 Team production theory ofcorporate law 68Margaret M. Blair23 Extended team production theory 69Morten Huse24 Stakeholder theory 70Thomas Clarke25 A critique of stakeholder theory 73Charles Blattberg, Dylan Scudder26 Behavioural theory ofboards and governance 74Morten Huse27 Multi-level corporate governance 75Konan A. Seny Kan28 Resource dependencetheory: a politicalunderstanding of corporategovernance 77Werner Nienhüser29 Sustainability and corporategovernance 78Jeroen Veldman30 Methodologicalperspectives in corporategovernance 80Konan A. Seny Kan, Wafa Khlif,Coral Ingley, Lotfi Karoui31 Integrating theoreticalperspectives on corporategovernance 82Lotfi Karoui, Coral Ingley, Wafa KhlifPART 5 GOVERNANCE REGIMES32 Anglo-American corporategovernance 85Thomas Clarke33 European corporategovernance:relationship-based approaches 91Thomas Clarke34 Asia-Pacificcorporate governance:family-controlled business networks 95Thomas Clarke35 Corporate governance in Italy 100Alessandro Zattoni36 Corporate governance inCentral and Eastern Europebetween 1945 and 1990 101Rainhart Lang, Miklos Dobak,Thomas Steger37 Corporate governance inCentral and Eastern Europeafter 1990 103Thomas Steger, Rainhart Lang,Miklos Dobak38 Neopatrimonial (corporate)governance 105Danson Kimani, TeeroovenSoobaroyen39 Director independence indeveloped and developingeconomies 107Coral Ingley40 Structural informationasymmetry, localinstitutions and corporategovernance in Africa 113Charles C. Okeahalam41 Corporate governanceand boards in Africa: theUbuntu model? 115Emmanuel Adegbite, Folajimi AshiruPART 6 FINANCE AND CORPORATEGOVERNANCE42 Ownership and corporategovernance 118Ludo Van der Heyden43 Corporate governance andfinance: investment funds 120Coral Ingley44 The global growth of equitymarkets 125Thomas Clarke45 Investor voting andshareholder rights 128Coral Ingley46 Insider trading 133Marc Goergen47 Pyramidal groups 134Alessandro Zattoni48 Corporate governance andfinance aspects: dividendpolicy, bond yields, and risk-taking 135Coral Ingley49 Dividend policy 139Marc Goergen50 The international premiumfor corporate governance 140Thomas Clarke51 Investors as stewards:a sustainable symbiosis? 143Hans van Ees, Niels Hermes52 Purpose and paradigm shiftsin banking governance 145Nihel Chabrak, María Luisa PajueloPART 7 ACCOUNTING ANDCORPORATE REPORTING53 Creative accounting, fraud,and international accountingscandals 148Michael J. Jones54 Accounting for inequality 149Prem Sikka55 The OECD/G20 agreementon minimum corporatetaxation: scope for fairnessor financialisation? 153Yuri Biondi56 Waves of internationalframeworks forsustainability reporting 155David Monciardini, Jukka TapioMähönen, Georgina Tsagas57 Integrity in disclosure andaccountability 160Nihel Chabrak, María Luisa Pajuelo58 ESG: overview and critique 162Coral Ingley59 ESG: reporting and greenwashing 166Coral Ingley60 Transparency in corporategovernance and ethical conduct 171Coral Ingley61 Voluntary environmentaldisclosure in anauthoritarian political context 175Coral Ingley, Wafa KhlifPART 8 LAW AND REGULATION62 The dimensions of corporatepersonality 180Lynn Stout63 Corporate moral personhood 182Matthew Lampert64 Enterprise 184Blanche Segrestin, Kevin Levillain65 Fiduciary duty 186Thomas Clarke66 Corporate governance deviance 189Ruth V. Aguilera, Siri Terjesen67 Contractual corporate governance 190Marc Goergen68 Codes of good governance 191Alessandro Zattoni69 Stewardship codes andinvestor stewardship 192Alice Klettner70 Questioning CEO-Chairseparation: a critical reviewand integrative model 193Wafa Khlif, Sami El Omari,Konan A. Seny Kan71 (Convergence of) legalcorporate perspectives 195Véronique Magnier72 The globalisation of regulation 197Thomas Clarke73 Revisiting regulatory frameworks 201Coral Ingley, Lotfi Karoui, Wafa Khlif74 A new global regulatoryarchitecture for corporategovernance? 202Thomas ClarkePART 9 STRATEGY ANDCORPORATE GOVERNANCE75 Corporate governance life cycle 206Igor Filatotchev, Steven Toms76 Corporate governance and M&As 207Xavier Castañer77 Strategic leadership by the board 210Ljiljana Erakovic78 Boards and strategy 211Alessandro Zattoni79 Value and value creation incorporate governance 212Daniel Yar Hamidi80 Ambidexterity 214Morten Huse81 Corporate governance,boards, and innovation:reviews of literature 215Coral Ingley82 Organizational legitimacy 219Martijn Boersma83 Board strategic balance:a practical theory of sportgovernance 220Lesley Ferkins, David ShilburyPART 10 FORMS OF GOVERNANCE84 Meta-organizations:evolving forms of governance 223Héloïse Berkowitz85 Entrepreneurial threshold firms 224Jonas Gabrielsson86 Corporate governance: thecase of the MondragonCooperative Group 226Hervé Grellier-Bidalun, JeanFrancois Chanlat87 Corporate governance in IPOs 228Alessandro Zattoni88 Value and value creationperspectives from researchand practice in SMEs 229Coral Ingley89 Complexity and powerdynamics in governing family firms 231Coral Ingley, Wafa Khlif90 Family firms and boardcomposition – complexity,ownership, and succession 234Wafa Khlif, Coral Ingley91 Corporate governancewithin and by the media 237Nathalie Fenton92 Whistleblowing 238Eva TsahuriduPART 11 BOARD PROCESSES ANDPERFORMANCE93 The board of statutory auditors 240Lino Cinquini, Andrea Melis94 Board roles 242Pieter-Jan Bezemer95 Theorising director taskperformance 243Stuart Farquhar96 Board role performance:opening the black box ofboard activation process 245Lotfi Karoui97 Board processes 247Alessandro Zattoni98 Board remuneration 248Coral Ingley99 Evolving perspectives onboard governance and innovation 251Coral Ingley100 Board capital 254Morten HusePART 12 LEADERSHIP IN THEBOARDROOM101 Board team leadership 256Ljiljana Erakovic102 Board dynamics 257Philip Stiles103 The chair’s leadership of the board 258Ljiljana Erakovic104 The continual rapid inflationin CEO pay in the United States 259Thomas Clarke105 Functional stupidity in theboardroom? 264Martin Blom, Mats AlvessonPART 13 BOARD DIRECTORS106 Business elites 266Sibel Yamak107 Board reforms 268Marta A. Geletkanycz108 Director independence 269Coral Ingley109 Directors’ fiduciary dutyand perspectives on sustainability 273Coral Ingley110 Digital skills ofnon-executive directors 278Michele PhillipsPART 14 DIVERSITY AND BOARD111 Diversity, equity and inclusion 281Thomas Clarke112 Diversity on boards 286Patricia Gabaldon113 Women on boards: targetsand quotas 288Ruth Sealy, Susan Vinnicombe114 Women on boards – shiftingboard behaviours 290Ruth Sealy115 Golden skirts 292Morten Huse116 Polish women on boards 293Agnieszka Slomka GolebiowskaPART 15 GLOBALISATION ANDINSTITUTIONS OFGOVERNANCE117 The meaning of globalization 295Thomas Clarke118 The deregulation of financeand the globalization ofcapital markets 297Thomas Clarke119 Globalization anddeglobalization of corporategovernance 300Thomas Clarke120 Globalization from below 304Wafa KhlifPART 16 CRISES IN GOVERNANCE121 Crisis and reform incorporate governance 307Thomas Clarke122 The Wall Street crash 1929 309Thomas Clarke123 The Asian financial crisis 1997 311Thomas Clarke124 NASDAQ/Dot.com crash 314Thomas Clarke125 The global financial crisis2007/2008 317Thomas Clarke126 The universal and pervasiveimpact of financialization 320Thomas Clarke127 Why has the COVID-19pandemic questionedcorporate governance? 322Yvon Pesqueux128 Beyond economics:revisiting governance criseswith Ibn Khaldun 323Wafa Khlif, Lotfi KarouiPART 17 CORPORATE GOVERNANCEAND SOCIETY129 From government to governance 327Antonino Palumbo130 Purpose-driven corporation 329Blanche Segrestin, Kevin Levillain131 Conceiving the purpose ofthe company 331Thomas Clarke132 The social licence to operate 335Thomas Clarke133 “Good governance” in theface of cultural differences 337Hèla Yousfi134 Innovation, growth and productivity 339Thomas Clarke135 Trust, trustworthiness andcorporate governance 342Nikolas Kirby136 Gender board quotas andsustainable development 343Morten Huse137 Human rights 344Justine Nolan138 Modern slavery 346Martijn BoersmaPART 18 DIGITAL ERA GOVERNANCE139 Digital transformation andgovernance 349Thomas Clarke140 Surveillance 353Afshin Mehrpouya141 Digital disruption and governance 355Thomas Clarke142 Smart governance 359Yvon Pesqueux143 Critique of digital disruption 361Thomas Clarke144 The governance of cyber security 364Thomas ClarkePART 19 CORPORATE SOCIALRESPONSIBILITY145 Corporate socialresponsibility andenvironmental and socialgovernance 369Thomas Clarke146 Doing the “right” thing:ethical behaviour andsustainable value creating business 373Coral Ingley147 The potential forinterlocking directorships toinfluence sustainability practices 376Coral Ingley148 Corporate tax avoidance 380Thomas ClarkePART 20 CORPORATESUSTAINABILITY149 Corporate governance ofsustainability 386Wafa Khlif, Lotfi Karoui, Coral Ingley150 The governance of sustainability 389Bobby Banerjee151 Governing for sustainability 390Coral Ingley152 The sustainability value curve 393Thomas Clarke153 Corporate governance andsustainable value creation 396Beate Sjåfjell154 Corporate climate champions 397Jasper Finkeldey155 Corporate greenwashing 399Thomas ClarkePART 21 REGENERATION OF THENATURAL WORLD156 The central role ofenvironmental justice incorporate governance 403Marcel Llavero-Pasquina, JoanMartínez-Alier157 Natural capital 406Coral Ingley158 Extinction accounting 409Jill Atkins159 Accounting care 411Jacques Richard160 Accounting for biodiversity 412Mike Jones161 Systemic sustainability ingovernance 414Wafa Khlif, Lotfi Karoui, Coral Ingley162 Innovation for sustainability 416Thomas Clarke163 Regeneration of natural capital 419Thomas Clarke

‘This Encyclopedia of Corporate Governance is an authoritative and comprehensive reference resource for corporate governance scholars around the world. With 163 entries provided by scholars from various disciplines, the text presents a balanced and convincing assessment of both the origins and consequences of agency problems, and how governance mechanisms can address them. In addition, the text includes various philosophical perspectives on corporate governance, highlights the importance of investigating corporate governance problems at various levels of analysis, and provides an overview of governance topics from the past to the current times. As a result, this is an excellent guide for students and researchers.’