Board Response to Transnational Regulation on Corporate Governance: A Case Study on EU Banking Regulation

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Journal Title
Journal ISSN
Volume Title
A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä
Date
2024-01
Major/Subject
Mcode
Degree programme
Language
en
Pages
20
1
Series
Risks, Volume 12, issue 1
Abstract
How does a board of directors respond to stringent transnational regulations on corporate governance? We explore this question in a case study that includes interviews with key governance actors of a bank dealing with regulatory changes in the European Union (EU) initiated in 2010 in response to the financial crisis of 2007–2008. Our findings suggest that transnational regulations introduced a conflicting prescription to the directors, who were caught between two needs: existing local governance practices and transnational regulatory compliance. Contributing to the international corporate governance research, our findings corroborate the resistance to transnational regulations and the distrust attributable to boards of directors’ role struggles and the invasive accountability mechanisms introduced by such regulations. We, therefore, contribute to the ongoing discussion on how the conflicting layers of corporate governance—local versus global—and how the discontinuities between competing existing practices and the prescriptions of transnational regulations can provoke micro-resistance.
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Keywords
financial institutions, board of directors, corporate governance, qualitative case study, transnational regulation
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Citation
Ikäheimo, S, Schiehll, E & Sinha, V 2024, ' Board Response to Transnational Regulation on Corporate Governance: A Case Study on EU Banking Regulation ', Risks, vol. 12, no. 1, 2 . https://doi.org/10.3390/risks12010002