IDEAS home Printed from https://ideas.repec.org/a/cup/buspol/v17y2015i04p661-696_00.html
   My bibliography  Save this article

Corporate governance reforms and political partisanship: an empirical analysis in 16 OECD countries

Author

Listed:
  • Darcillon, Thibault

Abstract

This paper explores the determinants of pro-minority shareholder corporate governance reforms. Using a Cox conditional model in gap time, this paper provides new empirical evidence on the linkages between the adoption of pro-minority shareholder corporate governance reforms at the firm level and government ideological affiliation in 16 OECD countries over the period 1970–2009. I find strong evidence linking rightward shifts in government ideological orientation with the adoption of minority shareholder protection legislation. This result supports our argument that changes in the composition of the coalition of heterogeneous interests and/or a change in the expectations of the parties’ constituency will affect government strategy on the adoption of pro-minority shareholder corporate governance reforms. I also find that the macroeconomic context at the international level may influence the adoption of these reforms. Our findings suggest that international economic integration has resulted not in the convergence of corporate governance regimes to the Anglo-Saxon model, but rather the emergence of hybrid corporate governance systems.

Suggested Citation

  • Darcillon, Thibault, 2015. "Corporate governance reforms and political partisanship: an empirical analysis in 16 OECD countries," Business and Politics, Cambridge University Press, vol. 17(4), pages 661-696, December.
    • Handle: RePEc:cup:buspol:v:17:y:2015:i:04:p:661-696_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1369525800001807/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Box-Steffensmeier, Janet M. & De Boef, Suzanna & Joyce, Kyle A., 2007. "Event Dependence and Heterogeneity in Duration Models: The Conditional Frailty Model," Political Analysis, Cambridge University Press, vol. 15(3), pages 237-256, July.
    2. Michel Goyer, 2006. "Varieties of Institutional Investors and National Models of Capitalism: The Transformation of Corporate Governance in France and Germany," Politics & Society, , vol. 34(3), pages 399-430, September.
    3. Bruno Amable & Donatella Gatti & Jan Schumacher, 2006. "Welfare-State Retrenchment: The Partisan Effect Revisited," Oxford Review of Economic Policy, Oxford University Press, vol. 22(3), pages 426-444, Autumn.
    4. Hibbs, Douglas A., 1977. "Political Parties and Macroeconomic Policy," American Political Science Review, Cambridge University Press, vol. 71(4), pages 1467-1487, December.
    5. Priya P. Lele & Mathias M. Siems, 2009. "Shareholder Protection: A Leximetric Approach," Chapters, in: Thankom Gopinath Arun & John Turner (ed.), Corporate Governance and Development, chapter 10, Edward Elgar Publishing.
    6. Rajan, Raghuram G. & Zingales, Luigi, 2003. "The great reversals: the politics of financial development in the twentieth century," Journal of Financial Economics, Elsevier, vol. 69(1), pages 5-50, July.
    7. Kostas Gemenis, 2013. "What to Do (and Not to Do) with the C omparative M anifestos P roject Data," Political Studies, Political Studies Association, vol. 61, pages 23-43, April.
    8. Burgoon, Brian & Demetriades, Panicos & Underhill, Geoffrey R.D., 2012. "Sources and legitimacy of financial liberalization," European Journal of Political Economy, Elsevier, vol. 28(2), pages 147-161.
    9. Culpepper,Pepper D., 2011. "Quiet Politics and Business Power," Cambridge Books, Cambridge University Press, number 9780521118590, October.
    10. Putnam, Robert D., 1988. "Diplomacy and domestic politics: the logic of two-level games," International Organization, Cambridge University Press, vol. 42(3), pages 427-460, July.
    11. Culpepper,Pepper D., 2011. "Quiet Politics and Business Power," Cambridge Books, Cambridge University Press, number 9780521134132, October.
    12. Alberto Alesina, 1987. "Macroeconomic Policy in a Two-Party System as a Repeated Game," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(3), pages 651-678.
    13. Dennis P. Quinn & A. Maria Toyoda, 2007. "Ideology and Voter Preferences as Determinants of Financial Globalization," American Journal of Political Science, John Wiley & Sons, vol. 51(2), pages 344-363, April.
    14. Amable, Bruno, 2003. "The Diversity of Modern Capitalism," OUP Catalogue, Oxford University Press, number 9780199261147.
    15. Abdul Abiad & Ashoka Mody, 2005. "Financial Reform: What Shakes It? What Shapes It?," American Economic Review, American Economic Association, vol. 95(1), pages 66-88, March.
    16. Barker, Roger M., 2010. "Corporate Governance, Competition, and Political Parties: Explaining Corporate Governance Change in Europe," OUP Catalogue, Oxford University Press, number 9780199576814.
    17. Abdul Abiad & Ashoka Mody, 2005. "Financial Reform: What Shakes It? What Shapes It?," American Economic Review, American Economic Association, vol. 95(1), pages 66-88, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thibault Darcillon, 2011. "Political Partisanship and Financial Reforms in Advanced Countries," Post-Print halshs-00639840, HAL.
    2. Thanh C. Nguyen & Vítor Castro & Justine Wood, 2022. "Political environment and financial crises," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 417-438, January.
    3. Filoso, Valerio & Papagni, Erasmo, 2015. "Fertility choice and financial development," European Journal of Political Economy, Elsevier, vol. 37(C), pages 160-177.
    4. Osterloh, Steffen, 2012. "Words speak louder than actions: The impact of politics on economic performance," Journal of Comparative Economics, Elsevier, vol. 40(3), pages 318-336.
    5. Betz, Timm & Pond, Amy, 2023. "Democratic institutions and regulatory privileges for government debt," European Journal of Political Economy, Elsevier, vol. 79(C).
    6. Jung, Samuel Moon & Vijverberg, Chu-Ping C., 2019. "Financial development and income inequality in China – A spatial data analysis," The North American Journal of Economics and Finance, Elsevier, vol. 48(C), pages 295-320.
    7. Campos, Nauro F. & Coricelli, Fabrizio, 2009. "Financial Liberalization and Democracy: The Role of Reform Reversals," IZA Discussion Papers 4338, Institute of Labor Economics (IZA).
    8. Simon Deakin & Prabirjit Sarkar, 2008. "Assessing the Long-Run Economic Impact of Labour Law Systems: A Theoretical Reappraisal and Analysis of New Time Series Data," WEF Working Papers 0043, ESRC World Economy and Finance Research Programme, Birkbeck, University of London.
    9. Pagano, Marco & Volpin, Paolo, 2005. "Shareholder Protection, Stock Market Development and Politics," CEPR Discussion Papers 5378, C.E.P.R. Discussion Papers.
    10. Brian Burgoon & Panicos Demetriades & Geoffrey R D Underhill, 2008. "Financial Liberalisation and Political Variables: a response to Abiad and Mody," WEF Working Papers 0039, ESRC World Economy and Finance Research Programme, Birkbeck, University of London.
    11. Jac Heckelman & Sandeep Mazumder, 2013. "Are we there yet? On the convergence of financial reforms," Economics of Governance, Springer, vol. 14(4), pages 385-409, November.
    12. Bonfiglioli, Alessandra & Gancia, Gino, 2015. "Economic Uncertainty and Structural Reforms," CEPR Discussion Papers 10937, C.E.P.R. Discussion Papers.
    13. Joon Hyeok Lee, 2024. "Consecutive decentralization: The effect of central bank independence on capital account liberalization," Economics and Politics, Wiley Blackwell, vol. 36(2), pages 809-831, July.
    14. Gu, Xian & Kowalewski, Oskar, 2016. "Creditor rights and the corporate bond market," Journal of International Money and Finance, Elsevier, vol. 67(C), pages 215-238.
    15. Giuseppe Bertola & Anna Lo Prete, 2013. "Finance, governments, and trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(2), pages 273-294, June.
    16. Nan Li & Chris Papageorgiou & Tao Zha, 2021. "The S-curve: Understanding the Dynamics of Worldwide Financial Liberalization," FRB Atlanta Working Paper 2021-19, Federal Reserve Bank of Atlanta.
    17. 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.
    18. Alessandra Bonfiglioli and Gino Gancia, 2010. "The Political Cost of Reforms," Working Papers 507, Barcelona School of Economics.
    19. Vincenzo Galasso, 2014. "The role of political partisanship during economic crises," Public Choice, Springer, vol. 158(1), pages 143-165, January.
    20. Kowalewski, Oskar & Pisany, Paweł, 2019. "What drove the growth of the corporate bond markets in Asia?," Research in International Business and Finance, Elsevier, vol. 48(C), pages 365-380.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:buspol:v:17:y:2015:i:04:p:661-696_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/bap .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.