Methodological issues in governance research: An editor's perspective

Abstract Manuscript type Review Research Question/Issue What can be learnt with regard to methods in corporate governance research from editorial experience in handling corporate governance manuscripts? We draw on our experience as editors and guest editors of various journals in highlighting some of the methodological challenges in corporate governance research. We consider methodological issues relating to both quantitative and qualitative studies. Within these broad approaches, we discuss implications of theorizing, ownership and types of firms, governance and institutional contexts, omission of governance variables, human and social capital of board members, endogeneity/causality issues, executive remuneration, configurations and interactions of governance constructs, other governance mechanisms, and data sources. Discussion of these issues also highlights the need for more theoretical and empirical consideration of contingent factors influencing governance relationships. We identify possible ways forward and future research avenues. Research Findings/Insights There is a need for corporate governance studies to devote greater recognition to the heterogeneity of various governance factors such as ownership types and director expertise. Studies have generally paid insufficient attention to the configurations of corporate governance. Theoretical/Academic Implications Future research needs to address the connections between the methodological recognition of heterogeneity and configurations and the implications for theorizing. Practitioner/Policy Implications Failure to address these methodological issues implies that conclusions drawn from corporate governance research for practice and policy could well be misleading.