TITLE

CATALYSTS FOR CHANGE IN BOARD GOVERNANCE PRACTICES: THE CASE OF THE INTRODUCTION OF NATIONAL POLICY 58 - 201 IN CANADA

AUTHOR(S)
Khemakhem, Hanen; Gélinas, Patrice; Baillargeon, Lisa
PUB. DATE
June 2014
SOURCE
Journal of Legal, Ethical & Regulatory Issues;2014, Vol. 17 Issue 2, p129
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This paper investigates the impact of the adoption of National Policy 58-201 in 2005 on board governance practices in Canada. We find that National Policy 58 - 201, which suggests that issuers adopt voluntarily an array of board governance best practices, has improved board governance practices significantly, to the point where board governance practices of Canadian issuers not subject to Sarbanes-Oxley became undistinguishable from those of Canadian issuers who had to comply with Sarbanes-Oxley mandatorily. This suggests that voluntary and mandatory calls for governance reforms by regulatory authorities may be equally effective. Our results also suggest that boards sensitive to disclosure governance issues are more likely to adopt board governance best practices while boards of extractive industry issuers may be less likely to do so without non-binding policies issued by regulatory authorities.
ACCESSION #
100277214

 

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