Corporate Governance in Argentina
Corporate Governance in
Emerging Economies
The case of Argentina
Content
Page
1. Introduction
3
2. Corporate Governance
4
3. Corporate Governance in developed economies
3.1 Corporate governance in the Netherlands
3.2 Globalization & Corporate Governance
5
6
8
4. Corporate Governance in Argentina
9
5. Practical comparison
5.1 The financial sector
5.2 The energy sector
11
6. Conclusion
13
7. References
14
8. Appendix
8.1 Management structure ING
8.2 Corporate structure Grupo Financiero Galicia
15
15
16
2
1. Introduction
Corporate governance has in the last decade taken a more central position in business practices worldwide. Most countries have developed a law, or code of conduct on corporate governance, in the last ten years, in order to increase transparency, trust and performance of the firm. The necessity of corporate governance is shown by accounting scandals, violation of laws and the large risks taken by large firms. Failing corporate governance practices are, by various researchers, identified as the reason of the ongoing current economic crisis (Weitzner & Peridis,
2011; Daniel, Cieslewicz & Pourjalali, 2012). The Netherlands is used as an exemplifying country for the Western, developed world in this paper, because various reasons. The Netherlands have dealt with large accounting scandals in two of their biggest companies, Royal Ahold N.V. and Royal Dutch Shell, which led to the incorporation of a new Corporate Governance Code, the
Tabaksblat Code (Schnyder, 2012). The Netherlands are economically very developed, but also suffer from the crisis. Moreover, Dutch institutions are considered to be strong, which should mean that corporate governance practices in the Netherlands follow the rules and are transparent.
Argentina on the other hand, is by some considered to be an emerging economy, which means that the importance of good corporate governance is increasing. However,
Emerging Economies
The case of Argentina
Content
Page
1. Introduction
3
2. Corporate Governance
4
3. Corporate Governance in developed economies
3.1 Corporate governance in the Netherlands
3.2 Globalization & Corporate Governance
5
6
8
4. Corporate Governance in Argentina
9
5. Practical comparison
5.1 The financial sector
5.2 The energy sector
11
6. Conclusion
13
7. References
14
8. Appendix
8.1 Management structure ING
8.2 Corporate structure Grupo Financiero Galicia
15
15
16
2
1. Introduction
Corporate governance has in the last decade taken a more central position in business practices worldwide. Most countries have developed a law, or code of conduct on corporate governance, in the last ten years, in order to increase transparency, trust and performance of the firm. The necessity of corporate governance is shown by accounting scandals, violation of laws and the large risks taken by large firms. Failing corporate governance practices are, by various researchers, identified as the reason of the ongoing current economic crisis (Weitzner & Peridis,
2011; Daniel, Cieslewicz & Pourjalali, 2012). The Netherlands is used as an exemplifying country for the Western, developed world in this paper, because various reasons. The Netherlands have dealt with large accounting scandals in two of their biggest companies, Royal Ahold N.V. and Royal Dutch Shell, which led to the incorporation of a new Corporate Governance Code, the
Tabaksblat Code (Schnyder, 2012). The Netherlands are economically very developed, but also suffer from the crisis. Moreover, Dutch institutions are considered to be strong, which should mean that corporate governance practices in the Netherlands follow the rules and are transparent.
Argentina on the other hand, is by some considered to be an emerging economy, which means that the importance of good corporate governance is increasing. However,
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