Is corporate governance maturity measurable?

Abstract

Purpose

This study aims to intend toward the measurement of corporate governance to identify its maturity levels within Omani public listed companies and also propose to identify whether corporate governance maturity (CGM) levels vary significantly between sectors or not. CGM is an innovation in the field of corporate governance, which assists organizations in achieving their objectives and satisfying shareholders.

Design/methodology/approach

This study used descriptive cross-sectional survey design. Data are collected by the internet-based tool and analyzed via SPSS.

Findings

This study found that corporate governance is measurable and can be measured to the levels of maturity. Moreover, this study identified that CGM does not differ among different sectors. From a total of 107 organizations, none of the organizations falls under the forming level and mature level. However, majority of organizations falls under normalized level followed by developing and established levels of maturity.

Practical implications

This study integrates significant empirical research and literature to broaden the potentials of CGM. This study provides a framework along with a calculation tool, which can be used by organizations, regulators and policymakers.

Originality/value

To the best of the authors’ knowledge, the maturity levels of Omani organizations are never being measured before. Moreover, past studies demonstrate single constituent relationship with CGM and not all four. Therefore, this study is distinctive from others by testing all four major components or constituents toward CGM.

Citation

Rehman, A. and Hashim, F. (2020), "Is corporate governance maturity measurable?", Corporate Governance, Vol. 20 No. 4, pp. 601-619. https://doi.org/10.1108/CG-07-2019-0220