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Political Partisanship and Financial Reforms in Advanced Countries


  • Thibault Darcillon

    () (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)


Applying regressions on a sample of 18 OECD countries from 1970 to 2009 using new indicators, we find that right-wing governments liberalize more the financial sector that left-wing governments. We show that if a left-wing government accepts to liberalize the financial sector, an increase of social security expenditures can facilitate the adoption of a new legislation in the financial sector. To estimate the impact of the government partisan affiliation on the corporate governance legislation, we use a probit model and a conditional Cox model in gap time in 16 OECD over the 1970-2009 period. Statistically, we find that right-wing governments enhance more pro-shareholder policies.

Suggested Citation

  • Thibault Darcillon, 2011. "Political Partisanship and Financial Reforms in Advanced Countries," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00639840, HAL.
  • Handle: RePEc:hal:cesptp:halshs-00639840
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    References listed on IDEAS

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    More about this item


    Effet partisan; libéralisation financière; gouvernance d'entreprise; changement institutionnel.; Political Partisanship; financial liberalization; corporate governance; institutional change.;

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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