ABSTRACT
The economic growth of Bangladesh is phenomenal but most of the formal institutions (e.g. family-concentrated ownership and control of companies, an inefficient and ineffective judicial system, and rampant corruption) co-exist with informal institutions (such as high power distance and a secretive culture). These local institutional settings are distinct from those prevailing in Anglo-American countries and conflict with recently imported corporate governance guidelines based on an Anglo-American model. Researchers should look beyond agency or institutional theory to acknowledge the role of institutional dynamics and individuals’ social and human capitals simultaneously while conceptualising the causal relationships between corporate governance and firm outcomes.
