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Corporate Governance

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  • Luigi Zingales

Abstract

This essay summarizes my own personal view of what corporate governance is about. I" argue that it makes sense to discuss corporate governance only in an incomplete contract world. " In this world, the notion of corporate governance is intrinsically related to the definition of the" firm. In this respect, I review the shortcomings of the existing definitions of the firm and the" possible applications of the idea that the firm is a specific investments" introduced by" Rajan and Zingales (1997a and 1997b). I conclude discussing the limitations of the incomplete" contracts approach to corporate governance.

Suggested Citation

  • Luigi Zingales, 1997. "Corporate Governance," NBER Working Papers 6309, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:6309
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance

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