Dear Prakash,

For sure, Corporate Governance practices have positive effects on keeping and guaranteeing all stakeholders` rights.There should be a balance among the rights of all stakeholders, not only the shareholders.

Dear Prakash,

I guess you try to check an empirical relation between corporate governance and shareholders rights, don't you? There are many item inside the "c.g." label such as the board of directors (size, indenpendence, meetings), the ownership structure (concentration, identity of largest shareholders...), etc. For different metrics of shareholders rights, I advice you to read

La Porta, R., López de Silanes, F., Shleifer, A., Vishny, R., 1998. Law and finance. Journal of Political Economy 106, 1113-1155

Corporate governance determines the extent to which a market is a fair game.  If not a fair game, the market will not serve to promote economic growth and development.  See Yener and McGowan on this site for a discussion of measures of corporate governance published by the World Bank and how they impact CG in eleven developing economies. 

Dear Mahfuz, Felix and Carl

Thank you very much for answering my question. But what I am planning to do is to find out the impact of Corporate Governance practice on shareholder’s right (especially on the level of obtaining relevant material and the level of participation in the shareholder’s meeting)

My problem is to measure the relationship CGP and the shareholder’s right i.e obtaining the level of information and participation in the shareholders meeting. Based on my hypothesis when the CGP level increase, the level of obtaining information and shareholder’s participation will increase too (positive relationship) but how I am going to measure it.

I am trying to measure the relationship by developing a model but which model will suit to measure the best relationship.

Participation in shareholder annual meetings is problematic because many shareholders do not own enough shares to warrant attending a meeting outside of their home city.  An alternative might be to look at proxy vote participation as a measure of shareholder participation.  Check the literature on this issue.  Information related to the issues being discussed at the annual meeting is provided in the proxy statement.

You could also contact any Shareholders' Associations you can find. Both Australia and New Zealand have active associations which exist to provide a voice for small shareholers, do a lot of policy work with regulators, and have publications that are of interest to shareholders and others. The NZSA has been particularly concerned with lack of attendance at AGM's by retail investors and because of its size and nature, is able to reach boards and C-suites on a personal level, something retail investors are not usually able to do unless they are substantial shareholders (hold 5% or more of the total shares).

Thank you Andrea for your valuable information.

If you are in a cross-country study, I suggest you to do it in countries with high ownership concentration like Brazil. Here you have public information about number of meetings by year/firm and presence of directors in these meetings. In countries with high ownership concentration you can assume you covered all relevant directors with voting rights, despite countries like US, with high dispersion and problems for measuring meetings participation.

 Worldwide Governance Index is available at

http://databank.worldbank.org/data/views/variableselection/selectvariables.aspx?source=worldwide-governance-indicators

Look at it like this:  Independent variables are eg board size, duality, number of meetings, composition of the board etc.  Dependent variables = shareholders' rights eg voting power, perfromance eg divident per share, ernings per share attributable to shareholders.  The idea is that you want to find whether there is a link between the variables.  You could use correlation and regression.

Thansk you Obert.

Dear Sir

I hope you are well.  I intend to travel to the UK, at any University for sharing notes on how financial issues are handled.  I am the Finance Director of Chinhoyi University in Zimbabwe.  Could you please give me the email or phone details of your finance director or finance manager so that I can contact them.  Thanks in Advance.

Dear Obert

If I may able to know the sector you are covering it will be easy to help you.

I am the finance director of a university.  I could come to your University to share notes on PhD studies.  I noted that you are a PhD student.  I am in year 3 of PhD doing data analysis.

My main reason to want  to come to UK is part of my conditions of service where i should find out how other universities are doing things like debtors management, creditors, procurement, students accounting etc.

Could you give me contact details eg phone or emails of relevant people.

Good day.

Dear Prakash,

In addition to the ideas provided above I would like to stress the importance of shareholder activism. A certain degree of shareholder activism is needed to make corporate governance mechanisms work. The wide dispersed shareholder ownership of today's publicly listed corporations in the dominant markets of USA and UK can be considered an obstacle to shareholder activism. I would like to refer you to the "Corporate Governance" by Robert Monks and Nell Minow, 2011, Wiley, an exciting work full of examples of shareholder activism. Also, regarding corporate governance practices please feel free to refer to my study "Case Study: Analysis of Corporate Governance and Management Control at Kendallville Bank" which deals with corporate governance questions on the background of the international best practice: https://www.researchgate.net/publication/306515523_Case_Study_Analysis_of_Corporate_Governance_and_Management_Control_at_Kendallville_Bank

It is a case study created for educational purposes. It was published in the International Journal of Applied Economic Studies Vol. 4, Issue 3, pp. 14-20 and thus can be used for referencing.

Paul

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