Evaluating published research - Essay Example

In this section, they state that beyond the investigation of corporate governance mechanisms, there is a great deal of discussion about how good or bad the existing governance mechanisms are of non-financial firms in industrialised countries. These arguments are provoked by the fact that each industrialised country has a different system of corporate governance that disciplines the management of firms: e.g., the United States and the United Kingdom have a market-oriented system of corporate governance, whereas Germany has a bank-oriented one.

The researchers single out uniqueness and peculiarities of the Anglo-American and German context, discuss advantages and limitations of cultural approach. The next section "Governance and national culture" defines and explains the notion of culture and corporate governance. Buck and Shahrim (2005) define and explain different approaches to corporate governance and culture applied by culturalists and institutionalists. This section is based on careful analysis of current literature and different perspectives dominated in modern management theory.

The authors state that the public mind-set as represented particularly in the ranks of the country's communication and education elites was, to say the least, anesthetized by the nonstop onslaught of these offensives. In contrast to culturalists, "some institutionalists deny the relevance of national culture, claiming that it amounts to national stereotyping, that national characteristics can change quickly, and that measures of culture have been calibrated in ways that are themselves culture-specific" (Buck and Shahrim 2005, p. 42). Indeed, corporate governance mechanisms consist of economic and legal institutions, such as the design of bankruptcy procedures, the allocation of control to the board of director