Reaffirming the importance of managerial discretion in corporate governance: A comment on Andersen (2017)

Moustafa Haj Youssef; Da Teng

doi:10.1108/CG-05-2018-0172

Reaffirming the importance of managerial discretion in corporate governance: A comment on Andersen (2017)

Moustafa Haj Youssef, Da Teng

School of Strategy and Leadership

Research output: Contribution to journal › Article › peer-review

9 Citations (Scopus)

181 Downloads (Pure)

Abstract

Purpose: The purpose of this study is to refute the work of Andersen (2017) by suggesting a different theoretical view and to argue that the concept of managerial discretion is one of the core dimensions that cannot be discarded when studying corporate governance. Design/methodology/approach: This paper uses theoretical frameworks from recent literature, definitions and empirical studies on the concept of managerial discretion and corporate governance. Findings: Several studies have empirically tested and measured the concept of managerial discretion, some have provided validity and reliability of the concept and others have showed the direct impact of discretion on firm performance. Practical implications: Research on managerial discretion provides owners and board of directors a clear advice on how much discretion can be granted to top executives by taking into consideration the different dimensions of the external and internal environment. Originality/value: This paper concludes that corporate governance research will not improve if it abandons the concept of managerial discretion.

Original language	English
Pages (from-to)	240-254
Number of pages	15
Journal	Corporate Governance
Volume	19
Issue number	2
Early online date	22 Aug 2018
DOIs	https://doi.org/10.1108/CG-05-2018-0172
Publication status	Published - 1 Apr 2019

Bibliographical note

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

Keywords

Corporate governance
Institutional antecedents
Managerial discretion
Organizational performance

ASJC Scopus subject areas

Business, Management and Accounting (miscellaneous)

Access to Document

10.1108/CG-05-2018-0172

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Cite this

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Reaffirming the importance of managerial discretion in corporate governance: A comment on Andersen (2017)

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

Access to Document

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