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The impact of financial crises on changes to the models of corporate governance

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  • Rudolf Stanisław

    (WSB University in Gdansk, Gdansk, Poland.)

Abstract

This study aims to define the impact of two largest crises of 1997–1998 and 2007–2008 on changes to the models of corporate governance. In order to achieve the assumed aim, a critical analysis of specialist literature and relevant legal regulations has been applied. The analysis is focused on changes in the main models of corporate governance, namely: in the Anglo-Saxon (monistic) model and in the German (dualistic) model. Generally, they can be defined as of evolutionary nature but some deeper changes have taken place under the influence exerted by the above-mentioned crises. The latter crisis has emphasized the important role of corporate governance in banks and other financial institutions. Changes in corporate governance are largely affected by international institutions or organizations, such as the Organization for Economic Cooperation and Development (OECD) or the European Commission. Their recommendations and guidelines have contributed to the dissemination of so-called good practice codes. The considerations presented below allow the author to state that in both analyzed models of corporate governance, changes occur in the same or similar direction lines (the phenomenon of convergence). It can be also observed that the first analyzed crisis has caused larger changes in the monistic model, whereas the second crisis has affected the dualistic model in a more significant way.

Suggested Citation

  • Rudolf Stanisław, 2021. "The impact of financial crises on changes to the models of corporate governance," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 57(3), pages 220-233, September.
    • Handle: RePEc:vrs:ijomae:v:57:y:2021:i:3:p:220-233:n:6
    DOI: 10.2478/ijme-2021-0018
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    References listed on IDEAS

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    1. Khanna, Tarun & Kogan, Joe & Palepu, Krishna, 2002. "Globalization and Similarities in Corporate Governance: A Cross-Country Analysis," CEI Working Paper Series 2002-6, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    2. Mark Hallerberg & Jonas Markgraf, 2018. "The Corporate Governance of Public Banks before and after the Global Financial Crisis," Global Policy, London School of Economics and Political Science, vol. 9(S1), pages 43-53, June.
    3. Henry Hansmann & Reinier Kraakman, 2000. "The End Of History For Corporate Law," Yale School of Management Working Papers ysm136, Yale School of Management, revised 01 Feb 2001.
    4. Sylvia Maxfield & Liu Wang & Mariana Magaldi de Sousa, 2018. "The Effectiveness of Bank Governance Reforms in the Wake of the Financial Crisis: A Stakeholder Approach," Journal of Business Ethics, Springer, vol. 150(2), pages 485-503, June.
    5. José L. Fernández Sánchez & María D. Odriozola Zamanillo & Manuel Luna, 2020. "How Corporate Governance Mechanisms of Banks Have Changed After the 2007–08 Financial Crisis," Global Policy, London School of Economics and Political Science, vol. 11(S1), pages 52-61, January.
    6. Siti Nuryanah & Sardar M. N. Islam, 2015. "Corporate Governance and Financial Management," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-43561-3.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    convergence; corporate governance; financial crisis; good practice codes; the OECD principles;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

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