Research Recap: When to Deviate in Corporate Governance

Are you keen on keeping up to date on the latest research in corporate governance? Don’t have time for pages of needlessly pretentious verbiage? Then this is the series for you. In Research Recap, Directorpoint gives boards of directors the need-to-knows on corporate governance hot off the presses of the leading industry journals. Just tell people you read the full thing; we’re not snitchin’.

The Publication

Academy of Management Review

The Article

Corporate Governance Deviance

The Research

Empirical: Conclusions are supported by data gathered through structured experimentation.

Theoretical: No hard numbers. Conclusions are drawn using logic supported by existing research.

The Set-Up

Because the concept of deviancy in corporate governance practices is under-researched, this paper was devoted to connecting the dots in the logic of existing studies and expanding on that logic wherever possible. The goal was to identify the following…

  • Why do firms deviate from the national “standards” in governance logic and practices?
  • When does that deviance occur (what are the precursors)?
  • How does that deviancy manifest itself?

The Takeaways

Deviancy in corporate governance practices occurs when an organization’s entrepreneurial identity falls far enough outside the nationally-accepted standards that to conform would require a drastic recalibration of that identity. That entrepreneurial identity plays a crucial role in dictating the level of discretion an organization applies towards determining whether or not it chooses to deviate (or remain deviant).

How much a firm’s governance practices ultimately deviate from the norm is determined by “the extent of national regulatory enforcement” and the organization’s capacity affect changes in its own governance.


We just saved you…

61 minutes, 43 seconds

Estimated reading time of our article = 1 minute, 12 seconds.

Estimated reading time of the research = 62 minutes, 55 seconds

In 61 minutes, 43 seconds you could…

  • Complete a daily beginner’s course in Japanese on your phone.
  • Watch 2010’s I’m Still Here (starring American treasure Joaquin Phoenix and directed by noted American Casey Affleck) in its entirety.
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  • Laugh at the poor schlubs taking a hot yoga class as you have brunch across the street.

More importantly, 61 minutes, 43 seconds gives you more than enough time to schedule your demo of Directorpoint’s simple, secure, and powerful platform for making better decisions… across the board!

The Source

Aguilera, R. V., Judge, W. Q., & Terjesen, S. A. (2018). Corporate Governance Deviance. Academy of Management Review, 43(1), 87–109.

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