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Financial Systems and Corporate Governance: A Review of the International Evidence


  • Colin Mayer


The paper is an overview of international variations in financial systems and corporate governance. Traditional theories of the firm emphasize the importance of managerial incentives, disciplining and finance in corporate governance. The paper argues that these are not the fundamental distinguishing features of different financial systems. Instead, ownership and control emerge as displaying more substantial variations across countries. These differences are associated with the formulation, implementation and adaptation of corporate strategy. The insider systems of Continental Europe and Japan may be superior at implementing policies which involve relations with stakeholders. Outsider, Anglo-American, systems may be more responsive to change.

Suggested Citation

  • Colin Mayer, 1998. "Financial Systems and Corporate Governance: A Review of the International Evidence," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 154(1), pages 144-144, March.
  • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(199803)154:1_144:fsacga_2.0.tx_2-r

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    References listed on IDEAS

    1. Hart, Oliver, 1995. "Corporate Governance: Some Theory and Implications," Economic Journal, Royal Economic Society, vol. 105(430), pages 678-689, May.
    2. Baker, Malcolm & Wurgler, Jeffrey, 2013. "Behavioral Corporate Finance: An Updated Survey," Handbook of the Economics of Finance, Elsevier.
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    Cited by:

    1. repec:dgr:rugsom:02e40 is not listed on IDEAS
    2. repec:bla:stratm:v:38:y:2017:i:13:p:2726-2743 is not listed on IDEAS
    3. Sea-Jin Chang, 2006. "Business groups in East Asia: Post-crisis restructuring and new growth," Asia Pacific Journal of Management, Springer, vol. 23(4), pages 407-417, December.
    4. A. Hassel, 2003. "Two Dimensions of the Internationalization of Firms," Journal of Management Studies, Wiley Blackwell, vol. 40(3), pages 705-723, May.
    5. Ãscar López-de-Foronda & Félix J. López-Iturriaga & Marcos Santamaría-Mariscal, 2007. "Ownership Structure, Sharing of Control and Legal Framework: international evidence," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(6), pages 1130-1143, November.
    6. repec:dau:papers:123456789/100 is not listed on IDEAS
    7. Jong, Eelke de & Semenov, Radislav, 2002. "Cross-country differences in stock market development : a cultural view," Research Report 02E40, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    8. Rosa Capolupo & Giuseppe Celi, 2004. "Il finanziamento dello sviluppo: Teorie ed evidenza empirica," SERIES 0009, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Sep 2004.
    9. Radygin Alexandr & Entov Revold & Mejeraoups I., 2007. "External Mechanisms of Corporate Governance," Research Paper Series, Gaidar Institute for Economic Policy, issue 104P.

    More about this item

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance


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