Varieties of governance

Driver, Ciaran

Varieties of governance

MPRA Paper from University Library of Munich, Germany

Abstract: The reform of corporate governance is again on the agenda in the wake of Enron and excessive risk-taking by financial institutions. However, the search for new and better forms of governance often seems to lack guiding principles. A theory of corporate governance ought to emerge from a theory of the firm. Yet, the literature shows how this project is both difficult and far from complete. In this paper we review how existing theory provides a variety of arguments favouring either a shareholder or a stakeholder orientation. These arguments may depend on whether the prime objective for governance is improved current performance or a more long-term focus for firms. A brief review of recent US governance reforms is given as a backdrop to discussing more far-reaching proposals that have emerged in the recent literature; a greater role for institutional investors on the one hand or a return to managerial capitalism on the other.

Keywords: CORPORATE_GOVERNANCE; SHAREHOLDER; STAKEHOLDER; INNOVATION (search for similar items in EconPapers)
JEL-codes: D02 G30 (search for similar items in EconPapers)
Date: 2007-11-15, Revised 2008-06-30
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Published in Louvain Economic Review 4.74(2008): pp. 425-453

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Related works:
Journal Article: Varieties of Governance (2008)
Working Paper: Varieties of Governance (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:18398

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