Revisiting the Party Paradox of Finance Capitalism: Evidence from Switzerland, Sweden and the Netherlands
AbstractThe 'party paradox' thesis claims that centre-left parties have a genuine interest in pro-shareholder corporate governance reforms, while centre-right parties oppose such reforms. Based on case studies of Switzerland, Sweden, and the Netherlands, I test the accuracy of this thesis and find that it does not apply to either of these cases: in Switzerland pro-shareholder reforms were made possible by centre-right not centre-left support; In Sweden and the Netherlands pro-shareholder reforms were marginal, because a broad coalition uniting centre-right and centre-left opposed them. My findings show therefore that the 'party paradox' is not a universal phenomenon and that most micro-level explanations of this phenomenon are inaccurate. In order to explain in which cases a party paradox will emerge, we need to add the nature of relations between employees and employers (cooperative vs. confrontational) as a determinant of centre-left preferences.
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Bibliographic InfoPaper provided by ESRC Centre for Business Research in its series ESRC Centre for Business Research - Working Papers with number wp372.
Date of creation: Dec 2008
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Corporate governance; legal reform; Switzerland; Sweden; the Netherlands;
Find related papers by JEL classification:
- P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
- K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
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