Abstract
As a pragmatist compliment to firms, intermediary regulatory bodies, regulatory and
law enforcement agencies, the purpose of this research article is to present an initial
framework for nurturing a corporate culture of disclosure and transparency, that
would fulfill the legal obligations towards stakeholders, while amicably addressing
ethical critics, and thus proactively averting the fomenting financial crisis.
This global descriptive review of corporate governance literature seeking to analyze
reform, by constructing a governance framework, that binds the board of directors
and management primarily with pro-delta-based performance incentives, mitigating
risk and agency cost, while strengthening the dividend policy, and utilization of
working capital, with provisional clawback deterrence to quell potential deviant
behavior. Cultivating and nurturing a corporate culture of disclosure and
transparency mandates board independence, to improve the firms’ performance, and
fulfill the fiduciary trust of the shareholders, while also considering mitigating debtladen risk, and fostering societal good.
The review constructs the Corporate Governance Disclosure and Transparency
Culture Ripple Effect Framework (CGDATCREF), under the patronage of the board
of directors, which conceptually should resonate throughout the organization, and
beyond captivating potential investors, customers, and admirers, while curbing
questionable ethical practices.
In retrospect of the evolutionary progress of corporate governance, the presented
framework will not be free from criticism, but rather provide avenues for enhanced
models, and empirical statistical inference, to evolve future robust models. The
framework could also be ported via simulation software application, to replicate real
Tianjin Daxue Xuebao (Ziran Kexue yu Gongcheng Jishu Ban)/
Journal of Tianjin University Science and Technology
ISSN (Online): 0493-2137
E-Publication: Online Open Access
Vol:54 Issue:08:2021
DOI 10.17605/OSF.IO/S2X4E
August 2021 | 495
corporate scenarios, thus aiding in calibrating and optimizing before decision
making.
Keywords
Agency theory, corporate culture, disclosure and transparency, risk mitigation, board
of directors, corporate governance, CGDTREF
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