Contact Us

For Marketing, Sales and Subscriptions Inquiries
2637 E Atlantic Blvd #43110
Pompano Beach, FL 33062

Conference List

International Journal of Management and Sustainability

August 2014, Volume 3, 8, pp 469-483

Corporate Governance, Sustainability and Capital Markets Orientation

Daniela M. Salvioni


Francesca Gennari

Daniela M. Salvioni 1
Francesca Gennari 2

  1. Department of Economics and Management University of Brescia, Italy 1

  2. Department of Economics and Management University of Brescia, Italy 2


Generally accepted principles of effective corporate governance have taken hold in the context of different models of governance, whose implementation is also linked to the share structure of the companies and to the dynamics of risk’s capital markets. Global companies need a global approach in the acquisition of consensus and financial resources, first of all through a correct development of the corporate governance activities and promoting a market-driven management inspired by long-term sustainable development. In this context, the growing importance of sustainability and the concept of global responsibility in the relationships with stakeholders join together with the convergence of corporate governance rules, reducing the gap between insider and outsider systems. This paper, by means of a research on the first ten most capitalised companies listed in countries characterized by different capital market orientation and corporate governance models (Usa, UK, Germany, France and Italy), aims to underlines the relations between these two to deepen the requisites for a more effective and sustainable governance.
Contribution/ Originality
This study contributes in the existing literature to emphasize the importance of corporate governance approaches inspired on sustainability in the capital markets. A governance oriented to sustainability implies significant changes in the relationships with company’s stakeholders, shareholders in particular, promoting a trend of convergence between insider and outsiders systems.  



  1. Admati, A.R. and P. Pfleiderer, 2009. The wall street walk and shareholder activism: Exit as a form of voice. Review of Financial Studies, 27(7): 2445–2485.
  2. Agrawal, A. and C.R. Knoeber, 1996. Firm performance and mechanisms to control agency problems between managers and shareholders. Journal of Fi-nancial and Quantitative Analysis, 13(3): 377-397. Available from
  3. Barker, R.M., 2006. Insiders, outsiders and change in European corporate governance. Available from
  4. Berle, A. and G. Means, 1932. The modern corporation and private property. New York: Macmillan.
  5. Bolton, P. and E.L. Von Thadden, 1998. Blocks, liquidity, and corporate control. Journal of Finance, 53(1): 1–25.
  6. Brondoni, S.M., 2003. Network culture, performance and corporate responsibility. Sym-phonya. Emerging Issue in Management, 5(1): 8-24. DOI 10.4468/2003.1.02brondoni.
  7. Brondoni, S.M., 2008. Market-driven management, competitive space and global networks. Symphonya. Emerging Issue in Management, 15(1): 14-27. DOI 10.4468/2008.1.02brondoni.
  8. Burkart, M., D. Gromb and F. Panunzi, 1997. Large shareholders, monitoring, and the value of the firm. Quarterly Journal of Economics, 112(3): 693–728.
  9. Carroll, A.B., 2004. Managing ethically with global stakeholders: A present and future chal-lenge. Academy of Management Executives, 18(2): 114-120.
  10. Clarke, T. and M. Dela Rama, 2007. Managing in turbulent times. New York: Harper & Row.
  11. Clarkson, M.B.E., 1995. A stakeholder framework for analyzing and evaluating corporate social performance. Academy of Management Review, 20(1): 92-117. DOI 10.5465/AMR.1995.9503271994.
  12. Cohen, S.S., C. Boyd and G. Boyd, 2000. Corporate governance and globalization. UK: Edgar Elgar Publishing.
  13. Consob, 2013. Report on corporate governance of Italian listed companies, Consob statistics and analysis N°2; Rome.
  14. Cornes, R. and T. Sandler, 1986. The theory of externalities, public goods and club goods. New York: Cambridge University Press.
  15. Da Silveira, A.D.M., 2011. Corporate scandals of the earlier 21st century: Have we learned the lesson? Available from
  16. Dasgupta, A. and G. Piacentino, 2013. The wall street walk when blockholders compete for flows. Working Paper, London School of Economics, London. Available from
  17. Dignam, A.J. and M. Galanis, 2009. The globalization of corporate governance: Assessing the impact of globalization on corporate governance systems. UK: Ashgate.
  18. Edmans, A., 2013. Blockholders and corporate governance. Paper Prepared for the Annual Review of Financial Economics. Available from
  19. Edmans, A. and G. Manso, 2011. Governance through trading and intervention: A theory of multiple blockholders. Review of Financial Studies, 24(7): 2395–2428. DOI 10. E. F. 1093/rfs/hhq145.
  20. Esti, C. and A. Winston, 2008. Green to gold: How smart companies use environmental strat-egy to innovate, create value, and build competitive advantage. NJ: Wiley.
  21. Fama, E.F. and M.C. Jensen, 1983. Separation of ownership and control. Journal of Law and Economics, 26.
  22. Freeman, R.E., 1984. Strategic management: A stakeholder approach. Boston: Pitman.
  23. Goldman, E. and G. Strobl, 2013. Large shareholder trading and the complexity of corporate investments. J. Financ. Intermed, 22(1): 106–122.
  24. Grossman, S.J. and O.D. Hart, 1980. Takeover bids, the free-rider problem, and the theory of the corporation. Bell Journal of Economics and Management Sciences, 11(1): 42–64.
  25. Hillman, A. and T. Dalziel, 2003. Boards of directors and firm performance: Integrating agen-cy and resource dependence perspectives. Academy of Management Review, 28(3): 83-396.
  26. Hirschman, A.O., 1970. Exit, voice, and loyalty: Responses to decline in firms, organizations, and states. Cambridge: Harvard University Press.
  27. Hutton, W., 1995. The state we’re in. London: Jonathan Cape.
  28. Khanna, N. and R. Mathews, 2012. Doing battle with short sellers: The conflicted role of blockholders in bear raids. Journal of Financial Economics, 106(2): 229–246.
  29. Letza, S., X. Sun and J. Kirkbride, 2004. Shareholding versus stakeholding: A critical review of corporate governance. Corporate Governance, 12(3): 242-162. DOI 10.1111/j.1467-8683.2004.00367.x.
  30. Marnet, O., 2007. History reports itself: The failure of rational choice models in corporate governance. Critical Perspective on Accounting, 18(2): 191-210.
  31. Okpara, J.O., 2011. Corporate governance in a developing economy: Barriers, issues and im-plications for firms. Corporate Governance, 11(2): 184-199.
  32. Pagano, M. and A. Röell, 1998. The choice of stock ownership structure: Agency costs, moni-toring, and the decision to go public. Quarterly Journal of Economics, 11(1): 187–225.
  33. Salvioni, D.M., 2008. Market-driven management and corporate governance Symphonya. Emerging Issue in Management, (2): 13-27. DOI 10.4468/2008.2.02salvioni.
  34. Salvioni, D.M., 2012. Governance, risk management and business effectiveness in global firm. In Tipuric D., Dabic M. (Eds.), Management, governance, and entrepreneurship. New perspective and challenges. UK: Access Press.
  35. Salvioni, D.M. and R. Astori, 2013. Sustainable development and global responsibility in corporate governance Symphonya. Emerging Issue in Management, 24(1): 1-25. DOI 10.4468/2013.1.03salvioni.astori.
  36. Salvioni, D.M. and L. Bosetti, 2006. Corporate governance report and stakeholder view Symphonya. Emerging Issue in Management, 11(1): 24-46. DOI 10.4468/2006.1.03salvioni.bosetti.
  37. Salvioni, D.M. and F. Gennari, 2014. Corporate governance in listed companies and market-driven management. In Tipuric, D., Raguz, I. V. and N. Podrug (Eds). Rethinking corpo-rate governance. UK: Pearson.
  38. Salvioni, D.M., F. Gennari, L. Bosetti and A. Almici, 2014. In Boubaker, S. and D.K. Ngu-yen (Eds). The audit committee in the EU emerging countries. Singapore: World Scien-tific Publishing.
  39. Sappington, D.E.M., 1991. Incentives in principal-agent relationships. The Journal of Eco-nomic Perspectives, 5(2): 45-66. DOI 10.1257/jep.5.2.45.
  40. Solomon, J., 2010. Corporate governance and accountability. UK: John Wiley and Son.
  41. Ullah, F., I. Hussain and A. Rauf, 2014. Impacts of macroeconomy on stock market: Evi-dence from Pakistan. International Journal of Management and Sustainability, 3(3): 140-146.
  42. Wade, C.L., 2002. Corporate governance failure and the managerial duty and care. St. John's Law Review, 76(4): 767-786.
  43. Witherell, B., 2002. Corporate governance and responsibility. OECD Observer N°234. Available from
  44. Zwiebel, J., 1995. Block investment and partial benefits of corporate control. Review of Eco-nomic Studies, 62(2): 161–185.


Google Scholor ideas Microsoft Academic Search bing Google Scholor


Competing Interests:


Related Article

( 1 ) Corporate Governance, Sustainability and Capital Markets Orientation
( 2 ) Benefits and Risks of Satisficing Levels for Input and Output Quantities in Efficiency Analyses from a Corporate Social Responsibility Perspective
( 3 ) Does Gearing Influence on Corporate Performance? Evidence from Kenya
( 4 ) An Overview of Corporate Governance Models in Financial Institutions
( 5 ) Corporate Reputation as a Strategic Management Tool: Through the Lens of Employees
( 6 ) Hotel Corporate Social Responsibility and Residents Support for Tourism Development
( 7 ) Impact of Board Diversity on Corporate Social Responsibility of Listed Oil and Gas Firms in Nigeria
( 9 ) Measuring SMEs’ Sustainability: A Literature Review and Agenda for Research
( 10 ) Poverty Alleviation and Long-Term Sustainability of Microfinance Project: With Special Reference to Matale District
( 11 ) E-Retailers and Environmental Sustainability
( 13 ) A Comprehensive Public-Private Partnership Concept for Resources Sustainability from a Mega-Project Management Multi-Level Perspective
( 14 ) Sustainability Risk Management (SRM): An Extension of Enterprise Risk Management (ERM) Concept
( 15 ) An Investigation into the Factors Affecting the Sustainability of the Land Reform Programme Beneficiaries in Kwa Zulu-Natal Province
( 16 ) Management and Agrarian Sustainability-Impact of Institutions in Bulgaria
( 17 ) Challenges for Sustainability in Critical Raw Material Assessments
( 18 ) A Review of Organic Food Consumption from a Sustainability Perspective and Future Research Directions
( 19 ) Role of Top Management Advocacy in SME’s Business Sustainability: A Mediation through Technology Opportunism
( 20 ) Sustainability in Supply Chain Management: The Role of Partner Collaboration and Power
( 21 ) Education and Sustainability, How SDG4 Contributes to Change the Representations of Developing Issues? The Case Study of Pakistan
( 22 ) The Nexus between the Exportation of Social Sustainability Certifications that Restrict Malaysian Palm Oil Companies and their Profitability: A Panel on Driscoll and Kraay Standard Errors and a Fully Modified Ordinary Least Square Approach
( 24 ) The Human Capital Retention Strategies that Local Authorities in Zimbabwe Can Adopt for Successful Talent Retention