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International Journal of Business Administration

Vol. 4, No. 6; 2013

Good Practices in Corporate Governance: One-Size-Fits-All vs.
Comply-or-Explain
Miroslav Nedelchev1
1

Corporate Governance, International Business School, Chiprovtzi 7 – 1303 Sofia, Bulgaria

Correspondence: Miroslav Nedelchev, Associate Professor in Corporate Governance, International Business School,
Chiprovtzi 7 – 1303 Sofia, Bulgaria. Tel: [phone]. E-mail: [e-mail]
Received: August 22, 2013 doi:10.5430/ijba.v4n6p75 Accepted: September 30, 2013

Online Published: November 8, 2013

URL: http://dx.doi.org/10.5430/ijba.v4n6p75

Abstract
There are many studies exploring the effects of hard and soft legislation on good practices. Few studies examine the strengths and weaknesses of particular legislation. These mainly focus on positive results of legislation and justify the application of existing approach for better practices.
The study compares the approaches of hard and soft legislation. It finds that both approaches are suitable for implementation despite of state policy. The analysis is developed by using the practices of several countries for latest
20 years.
This study explored national legislation and its effects on good practices in corporate governance. It revealed that there was no significant difference between state policy and approaches, and between legislation and corporate governance practices.
The objective of the study is to develop deeper insight into pros and cons adoptation of approaches. Comparative analysis shows that state policy determines the good practices. Moreover, the conclusion point out that there is a small freedom of action for companies to attract investors.
Keywords: good practices, corporate governance
1. Introduction
More and more frequently, researchers explain the roots of modern crisis and proposals for recovery. Policy makers search balance among competitive power of national economy and international

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