Title: Impact of country-level governance on entrepreneurial performance: a cross-country analysis

Authors: Najib H.S. Farhan; Faozi A. Almaqtari; Waleed M. Al-Ahdal; Mohd Mohd Yasir Arafat

Addresses: Department of Accounting, Faculty of Business Studies, Arab Open University, KSA ' Department of Accounting and Finance College of Business Administration, A'Sharqiyah University, Ibra 400, Sultanate of Oman ' Department of Accounting, Faculty of Business, Economics and Social Development, University Malaysia Terengganu, Malaysia ' Aligarh Muslim University, Aligarh, Uttar Pradesh 202001, India

Abstract: The current study aims to investigate the impact of country-level corporate governance and directors' liability on entrepreneurship performance. The study sample consists of 52 European and non-European countries for the period from 2014 to 2021. Factor analysis is used which results in selecting three dimensions out of 20 dimensions of entrepreneurship. The study runs PCSE estimation on balanced panel data. The empirical outcome of the work revealed that R&D transfer is positively impacted by voice and accountability and government effectiveness; negatively affected by quality of regulatory framework, rule of law, and directors' liability. It is also found that aggregate early-stage entrepreneurial activity is negatively associated with rule of law and government effectiveness. Further, aggregate early-stage entrepreneurial activity is positively impacted by regulatory quality, control of corruption, and directors' liability. Moreover, this work includes directors' liabilities to examine their impact on entrepreneurship.

Keywords: country-level corporate governance; entrepreneurship; factor analysis; European and non-European countries.

DOI: 10.1504/AAJFA.2024.137365

Afro-Asian Journal of Finance and Accounting, 2024 Vol.14 No.2, pp.143 - 169

Received: 12 Dec 2021
Received in revised form: 12 Nov 2022
Accepted: 27 Jan 2023
Published online: 14 Mar 2024 *

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