Driver, Ciaran (2008) 'Varieties of Governance.' Louvain Economic Review, 74. pp. 425-453.
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.
|SOAS Departments & Centres:||Faculty of Law and Social Sciences > School of Finance and Management|
|Depositing User:||Mutsa Marau|
|Date Deposited:||22 Oct 2010 10:31|
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