This Case is about INTERNATIONAL BUSINESS
PUBLICATION DATE: November 15, 2012 PRODUCT #: BH502-HCB-ENG
We explore these harms in the circumstance of little publicly traded Canadian businesses. We exploit the reality that such corporation were not subject to corporate governance guidelines prior to 2005 and thereby evaluate the determinants of voluntary government practice choices, in addition to the effects of these practices on business performance. Using a distinctive data set, we build a corporate governance index for every company. We quantify performance by two variants: quality of fiscal performance and accounting gains. We find that fiscal and bookkeeping performances are positively associated with corporate governance; yet, their inherent mechanisms may differ. Given this result, it will be natural to expect all companies to select higher rates of government. Nevertheless, our results also indicate resource constraints that restrict their selections are faced by modest businesses. We reason that good government is an important driver of business operation that is little that the owners and managers of these companies neglect cannot.