Competition law and corporate governance

How corporate governance influence strategy?
Corporate governance plays a critical role in strategy formulation and strategic delivery.
It defines the roles and responsibilities of the board and the executives.
It also determines how an organisation is governed..
The Interaction between Competition Law and Corporate Governance
European competition law today derives mostly from articles 101 to 109 of the Treaty on the Functioning of the European Union (TFEU), as well as a series of Regulations and Directives.
Four main policy areas include: Cartels, or control of collusion and other anti-competitive practices, under article 101 TFEU..
What are 3 reasons why corporate governance is important?
Benefits of Corporate Governance
Corporate governance can give investors and stakeholders a clear idea of a company's direction and business integrity.
It promotes long-term financial viability, opportunity, and returns.
It can facilitate the raising of capital..
What are the 4 pieces of corporate governance?
A strong corporate governance system is one that also encompasses the 'four Ps': people, purpose, process and performance..
What is corporate governance competitive advantage?
Competitive advantage refers to the ways that a company can produce goods or deliver services better than its competitors.
It allows a company to achieve superior margins and generate value for the company and its shareholders..
By establishing appropriate incentives and controls, corporate governance can help reduce conflicts of interest and improve the company's financial performance by increasing the value of the company and the return on investment for shareholders.
Corporate governance is the system by which companies are directed and controlled.
Boards of directors are responsible for the governance of their companies.
The shareholders' role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in place.
Countries matter because they influence the costs that firms incur to bond themselves to good governance and the benefits they receive from doing so.
Better governance reduces a firm's cost of funds only to the extent that investors expect the firm to be governed well after the funds have been raised.

Aug 4, 2023The connection between competition and good corporate governance is derived from the product market competition hypothesis (PMCH) that projects

Competition law can have significant impact on corporate governance. Although, corporate governance has focused on behaviour and structure within a single firm, and antitrust has focused on behaviour and structure between firms in the market (Waller 2011) the connection between the two cannot be denied.

Florence Thépot provides the first systematic account of the interaction between competition law and corporate governance. She challenges the 'black box' conception of the firm- or 'undertaking' - in competition law, as applied to increasingly Google BooksOriginally published: February 2019Author: Florence Thépot

Competition and CSR

To distinguish among these views, we examine how competition laws shape CSR.
By competition laws, we refer to the rules regulating competition among firms, such as those concerning mergers and acquisitions, anticompetitive agreements, and the ability of firms to exploit dominant positions.
To measure these laws, we use the new Competition Law Index.

Competition, Norms, and CSR

To better understand the CSR-competition nexus, we next examine a corollary of the stakeholder view.
The stakeholder view suggests that by investing in the well-being of workers, customers, suppliers, and local communities, CSR builds loyalty and trust with those stakeholders.
Thus, when an intensification of competition induces firms to compete fo.

Do competition laws increase corporate valuations?

Albeit imperfect, researchers often use these measures to gauge firms’ operating performance and managerial slack.
We use them to shed additional empirical light on why intensifying competition laws is associated with subsequent increases in corporate valuations.

How do competition laws shape CSR?

To distinguish among these views, we examine how competition laws shape CSR.
By competition laws, we refer to the rules regulating competition among firms, such as:

those concerning mergers and acquisitions

anticompetitive agreements

and the ability of firms to exploit dominant positions.

How does competition affect a company?

In particular, competition can induce firms to address inefficiencies associated with agency problems that allow managers to shirk, empire-build, tunnel, and engage in other actions that extract private benefits from the firms at the expense of shareholder value.

Is corporate governance too tight?

Corporate governance institutions—like board elections, capital structure, and shareholder activism—have long tied executives and boards more tightly to shareholder-profit goals.
Some thought tightening was needed for managerial accountability; some thought accountability was already too tight and managers needed more autonomy.

What are the main aspects of competition law?

The main aspects of competition law are, first, the 'rule of reason and second, is the 'per se rule'

These rules originated from the US - the "The Sherman Act 1890, and the famous case of "Northern Pacific Railway Co

v United States and Others" 6

What happens if a company doesn't comply with a competition law policy?

Staff should be made aware that failure to adhere to their company’s competition law policy could result in large fines and criminal charges against individual employees and the company

VinciWorks has created a competition law policy template that is fully compliant with the Competition Act 1998 and the Enterprise Act 2002

Competition law and corporate governance

How corporate governance influence strategy?

The Interaction between Competition Law and Corporate Governance

What are 3 reasons why corporate governance is important?

What are the 4 pieces of corporate governance?

What is corporate governance competitive advantage?