Determinants Of Corporate Governance Quality In Algerian Small And Medium Sized Enterprises: Case of joint stock companies in the west region of Algeria.
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Date
2017-09
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Université de M'sila
Abstract
Corporate governance system in Algeria has recently witnessed an important escalation in
terms of providing more efforts and giving new approaches to enhance its practices among the
Algerian enterprises whether private or public ones. However, corporate governance is not
related only with big enterprises, in fact, SMEs are also targeting to benefits from this new
managerial system. As in Algeria the SMEs are considered to be the largest tissue of
enterprises mode, therefore corporate governance begins to maintain its pillar inside the
Algeria SMEs. They are seeking to find the best ways to implement corporate governance so
as to get the utmost benefit from corporate governance, so the objective is not only to show
that the enterprise is implementing corporate governance practices but to enhance the system
of management of the enterprise on the other hand.
Through this paper in both the theoretical and empirical part we did shed light on the
corporate governance on the Algerian small and medium sized enterprise where the objectives
was to state or to identify the determinants of corporate governance quality in the Algerian
SMEs enterprises, this paper has come to a set of results as the following:
• The ownership structure and the role of partners inside the SMEs are determinants of
corporate governance quality, that means as long as the ownership structure is clear
inside the enterprise and the partners maintain a clear position in terms of practicing
their rights and doing their duties, this would bring a good index of corporate
governance quality.
• Maintaining a good relationship between the owners of the enterprise and the
stakeholders is an essential determinant of corporate governance quality in Algerian
SMEs, this means that the enterprise would have a good practice of corporate
governance as long as the relation between the owners and the stakeholders is
characterized in a strong manner and it goes well.
• External regulations and transparency also are among the determinants of corporate
governance quality, this means that as much as the regulation and laws that organize
the environment of business are enabled in favor of the enterprises activities it would
give a good index of corporate governance quality.
• The concept of corporate governance is not enabled as best as it should be in Algerian
SMEs.