[Posted by Umakanth Varottil]
In a column in the Financial Express, Rajesh Chakrabarti sets out some observations regarding corporate governance trends that are affecting Indian companies (particularly conglomerates), based on academic research. These include concentrated ownership (even among large listed companies), lower than desired levels of board supervision, earnings management and the skewed nature of executive compensation. While this column focuses on the Indian situation, it is important to note that most emerging and developing economies are largely faced with similar issues relating to corporate governance as their ownership structures as well as institutional matters pertaining to corporate governance tend to be somewhat similar in nature.
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