We introduce a model that describes the evolution of compliance with corporate governance practices regulated by comply or explain (‘CorE’) standards. We show that a practice’s compliance level evolves as a diffusion process, which converges to the practice efficacy level. The model allows...

We consider a committee that consists of n members with one person one vote approving a proposal if the number of affirmative votes from the members reaches threshold k. Which threshold k between 1 and n is "good" for the committee? We suppose that if a new threshold k' proposed by some...