Z. Mamun, Muhammad and Aslam, Mohammad
(2005)
Attitude Of Corporate Managers And
Stockholders With Respect To Good
Governance In A Developing Country:
A Case Study Of Bangladesh.
Asian Academy of Management Journal (AAMJ), 10 (2).
pp. 1-25.
ISSN 1394-2603
Abstract
This study showed the perceptional differences between corporate managers1 and
stockholders2 regarding good governance. The study is conducted among 25 pairs of
senior managers and stockholders from 25 randomly chosen corporations3 in
Bangladesh. Different statistical tools like numeric scale, discriminant analysis,
descriptive analysis, t-test, F-test were used for the comparative analysis. Regarding
good governance, it is found that the corporate managers and stockholders possess
opposing view. While managers of the studied firms find governance of their companies
is quite well but stockholders view that it is very poor. This happened especially in terms
of turnover, production, capital, leverage, debt service, credit policy, solvency, human
resource, recruitment, technology, customer satisfaction, internal control, strength,
opportunity, competition, industry position, collective bargaining agent (CBA) issues and
economic remedies which the study found the groups differ in perception; whereas, they
have similar view in terms of adequacy of research fund, company weaknesses and
threats, contingency plans, presence of political influence. The managers think that the
companies do not have enough retained earnings and these should not be distributed
among stockholders, but the stockholders think otherwise. Managers always perceive
that they are underpaid whereas stockholders express the opposite view. Each group
believes that it is the other group that dominates the decision-making. While both the
groups want to have mutual interaction but stockholders want to interact more than the
mangers. No doubt this attitudinal differences are not good for smooth functioning of the
corporations, what is needed is openness, more dialogues, mutual trust and
understanding of each other. The study also noted that corporate managers' tenure is
more with the company than a stockholder's holding of stock. It is also found that the
managers are better educated than the stockholders. The study observed more male
domination both in management position and stockholding of the corporations. Though
both of the groups belong to same age level but their distribution shows that the
stockholders entering the share market at an early age
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