THE INFLUENCE OF CORRUPTION ON CORPORATE GOVERNANCE STANDARDS: SHARED CHARACTERISTICS OF RAPIDLY DEVELOPING ECONOMIES

Abstract

This article evaluates the relationship between the level of corruption in rapidly developing economies and corporate governance processes therein.  Previous literature illustrates a strong relationship between corporate governance and corruption and suggests that in countries with high levels of corruption, firms lack efficient corporate governance practices.  Similarly, countries with deficient corporate governance practices and low levels of compliance to these standards breed corruption leading to a wide range of transparency dilemmas.  This study delves deeper through careful examination regarding the level of compliance with corporate governance standards and the pervasive effects of corruption on the governance processes of firms with specific regard to rapidly developing economies as well as offering comparisons and similarities of shared characteristics among these countries.