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Never Waste a Good Crisis: An Historical Perspective on Comparative Corporate Governance

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  • Randall Morck
  • Bernard Yeung

    (1Distinguished University Professor and Stephen A. Jarislowsky Distinguished Chair in Finance, School of Business, The University of Alberta, Edmonton, Canada T6G2R6; Research Associate, National Bureau of Economic Research
    2Business School, National University of Singapore, Singapore 117592; Stern School of Business, New York University, New York, New York 10003)

Abstract

Different economies at different times use different institutional arrangements to constrain the people entrusted with allocating capital and other resources. Comparative financial histories show these corporate governance regimes to be largely stable through time, but capable of occasional dramatic change in response to a severe crisis. Legal origin, language, culture, religion, accidents of history (path dependence), and other factors affect these changes because they affect how people and societies solve problems.

Suggested Citation

  • Randall Morck & Bernard Yeung, 2009. "Never Waste a Good Crisis: An Historical Perspective on Comparative Corporate Governance," Annual Review of Financial Economics, Annual Reviews, vol. 1(1), pages 145-179, November.
    • Handle: RePEc:anr:refeco:v:1:y:2009:p:145-179
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    File URL: http://www.annualreviews.org/doi/abs/10.1146/annurev.financial.050808.114257
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    Cited by:

    1. Petar Stankov, 2018. "Banking Crises and Reversals in Financial Reforms," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 68(5), pages 442-459, October.
    2. Palmberg, Johanna, 2012. "Family Control and Executive Compensation," Ratio Working Papers 186, The Ratio Institute.
    3. Beck, T.H.L., 2010. "Legal Institutions and Economic Development," Other publications TiSEM 8aa07b48-ce55-4cf6-8754-7, Tilburg University, School of Economics and Management.
    4. Bianco, Madga & Golinelli, Roberto & Parigi, Giuseppe, 2009. "Family firms and investments," MPRA Paper 19247, University Library of Munich, Germany.

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    More about this item

    Keywords

    agency problems; institutions; structural reform; family business groups; oligarchy; corporatism;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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