Re-Evaluating Shareholder Primacy in the Post-Crisis Context: Book Review of Law, Corporate Governance and Partnerships at Work by Richard Mitchell et al. (Ashgate Publishing, 2011)

2013 ◽  
Author(s):  
Dezso Farkas
Keyword(s):  
Corporate Governance ◽  
Shareholder Primacy ◽  
Ashgate Publishing

Reversing Financialization

2018 ◽  
Author(s):  
Simon Deakin
Keyword(s):  
Corporate Governance ◽  
Corporate Strategy ◽  
Negative Impact ◽  
Focal Point ◽  
Employee Voice ◽  
Board Structure ◽  
Shareholder Primacy ◽  
Financial Interests ◽  
Legal Model ◽  
Legislative Framework

The debate over corporate governance is skewed by the common misunderstanding that shareholders are the owners of companies, and are entitled to have them run in their interest. The legal model of the firm is more nuanced, seeing the corporation as a complex entity characterized by co-operation between the suppliers of capital and labour, with a co-ordinating role for management. The elevation of shareholder primacy as a focal point for corporate strategy over recent decades is the result of government deferring to financial interests in the making of rules governing takeovers and board structure. Reversing financialization, and the negative impact it is having on social cohesion and innovation, will require a new legislative framework for corporate governance, with a greater role for employee voice and a reorientation of investment priorities.

scholarly journals Shareholder Primacy and the Trajectory of UK Corporate Governance

2003 ◽  
Vol 41 (3) ◽  
pp. 531-555 ◽  
Author(s):  
John Armour ◽  
Simon Deakin ◽  
Suzanne J. Konzelmann
Keyword(s):  
Corporate Governance ◽  
Shareholder Primacy

scholarly journals Book review: “Corporate governance: New challenges and opportunities”

2018 ◽  
Vol 14 (1) ◽  
pp. 57-58
Author(s):  
Alessio M. Pacces ◽  
Laurent Germain ◽  
Áron Perényi
Keyword(s):  
Corporate Governance ◽  
Point Of View ◽  
Challenges And Opportunities ◽  
New Challenges

This review covers the book titled “CORPORATE GOVERNANCE: NEW CHALLENGES AND OPPORTUNITIES”, which was written by Alexander N. Kostyuk, Udo Braendle and Vincenzo Capizzi (Virtus Interpress, 2017, Hardcover, ISBN: 978-617-7309-00-9). The review shortly outlines the structure of the book, pays attention to it’s strong sides and issues that will be, by the reviewers’ point of view, most interesting for the reader.

Corporate Governance: What Are the Issues?

2020 ◽  
pp. 10-42
Author(s):  
Helmut K. Anheier ◽  
Christoph M. Abels
Keyword(s):  
Corporate Governance ◽  
Global Financial Crisis ◽  
Shareholder Primacy ◽  
Board Diversity ◽  
Corporate Governance Mechanisms ◽  
Corporate Governance Codes ◽  
History Of ◽  
Increasing Demand ◽  
The Global Financial Crisis ◽  
Corporate Social

Traditionally, corporate governance is about agency problems caused by the division of ownership and control. This chapter moves beyond this understanding. Starting with a theoretical overview, the chapter reviews different approaches to corporate governance and discusses shareholder primacy in light of the increasing demand for corporate social responsibility. Afterwards, a brief history of the development of corporate governance codes is given, followed by the role of corporate governance during the global financial crisis. Different corporate governance mechanisms, such as independent directors, board composition, and member diversity, as well as executive remuneration are subsequently discussed. Problems specific to corporate governance of technology companies are also highlighted, as well as the lessons Germany’s co-determination law can teach for the understanding of board diversity. The chapter concludes with a brief reflection on shareholder primacy, a diversifying corporate world, and the future of corporate governance codes.

scholarly journals Transplantation of Anglo-American corporate governance and its impact on financial market growth: a comparative analysis of nineteen developing countries 1995-2014

2019 ◽  
Vol 19 (5) ◽  
pp. 884-922 ◽  
Author(s):  
Navajyoti Samanta
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Financial Market ◽  
Research Paper ◽  
Financial Economic ◽  
Multilevel Regression ◽  
Shareholder Primacy ◽  
Content Type ◽  
Market Growth ◽  
Anglo American

Purpose Since the late 1990s, developing countries have been encouraged by international financial organisations to adopt a shareholder primacy corporate governance model. It was anticipated that in an increasingly globalised financial market, countries which introduced corporate governance practices that favour investors would gain a comparative advantage and attract more capital leading to financial market growth. This paper aims to empirically test this hypothesis. Design/methodology/approach The present research paper quantitatively investigates whether adopting shareholder primacy corporate governance norms has had any impact on the growth of the financial market, focusing on nineteen developing countries between 1995 and 2014. Time series indices are prepared for corporate governance regulations, financial market development along with three control indices. Then a lagged multilevel regression between these indices is used to investigate the strength of causality between the adoption of pro-shareholder corporate governance and the growth of the financial market. Findings The research paper finds that shifting towards a shareholder primacy model in corporate governance has a very small effect on growth of financial market in developing countries. Overall the financial, economic and technological controls have much more impact on the growth of financial markets. Originality/value This paper conclusively ends the discussion as to whether change in corporate governance has any impact on financial market growth of a country. The papers uses Bayesian econometric model. The paper thus signals the end of LLSV led question as to whether law can affect finance.

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