Open AccessThe Practice of Corporate Governance in Companies Receiving Foreign Direct Investment in Cameroon
Author(s) -
David Ngoungo
Publication year - 2012
Publication title -
research in world economy
Language(s) - English
Resource type - Journals
eISSN - 1923-399X
pISSN - 1923-3981
DOI - 10.5430/rwe.v3n1p2
Subject(s) - corporate governance , foreign direct investment , business , foreign capital , element (criminal law) , capital (architecture) , foreign ownership , accounting , capital investment , financial system , monetary economics , market economy , finance , economics , macroeconomics , history , archaeology , political science , law
This paper attempts to demonstrate that if investors activism (institutional or foreign) is considered as an enabling element for monitoring when capital is dispersed, such can, on the contrary, lead to the counter-performances of corporate governance in the case of highly concentrated ownership. With the help of factorial analysis, we classify companies receiving foreign direct investments (FDI) in Cameroon. A comparison of groups obtained reveal that 60 % of the enterprises have a capital concentration of more than 50 % in the hands of foreign investors and are identified as a contractual link to divergent interests, with dormant managers and employees, presence of few external administrators and insignificant or low returns