Are Italy and Spain Mediterranean Sisters? A Comparison of Corporate Governance Systems

This chapter argues that corporate governance practices are influenced by institutional features of the economy in which they are embedded, and by the political and economic changes that take place in that economy. The purpose of this chapter is to describe and explain corporate governance models found in two rapidly changing countries, Italy and Spain, and contrast these countries’ models with those in other OECD countries. I first describe existing corporate governance models. I then discuss Italy’s and Spain’s main triggers of change and analyze their respective corporate governance practices by reference to other industrialized countries. Finally, I compare corporate governance practices in these countries and assess where Italy and Spain lie on the spectrum of corporate governance models.