Corporate Governance: Theoretical and Empirical Perspectives

by Edited by Xavier Vives

• ISBN13: 9780521781640
• ISBN10: 0521781647
• Format: Hardcover
• Copyright: 2000-10-02
• Publisher: Cambridge University Press

Summary

Corporate governance is an active area of research and public debate. The recent generalization of 'shareholder value’ ideas and institutional investment, the establishment of codes of best practice for boards of directors, and the controversy about whether market oriented or bank-relations oriented systems are better for economic performance provide cogent examples. The outcome of the debate is important for industrialized nations, developing countries, and transition economies. The volume takes stock of research in the topic, criticizes the standard agency view, and presents ideas and analysis about the role of competition, the political economy of corporate governance, the effects of different systems on growth and performance, the governance system by venture capital in the Silicon Valley, and human capital and control in the new corporation.

Table of Contents

Preface	vii
Contributors	viii
Corporate Governance: Does It Matter?	1	(22)
Xavier Vives
Introduction	1	(1)
An Overview of Corporate Governance Systems	2	(2)
The Agency Approach to Corporate Governance: Where Do We Stand?	4	(5)
Criticism of the Standard View	9	(3)
New Ideas and Results	12	(3)
Conclusion	15	(8)
Corporate Governance and Competition	23	(72)
Franklin Allen
Douglas Gale
Introduction	23	(2)
Different Concepts of the Firm	25	(31)
The Role of Competition	56	(6)
An Evolutionary Approach	62	(5)
Competition for Markets: A Parable	67	(9)
Concluding Remarks	76	(19)
Discussion	84	(1)
Jorge Padilla	84	(6)
Monika Schnitzer	90	(5)
On the Economics and Politics of Corporate Finance and Corporate Control	95	(42)
Martin Hellwig
Introduction	95	(5)
Corporate Finance and Corporate Control	100	(12)
Allocative Implications of Management Autonomy	112	(10)
The Politics of Corporate Control	122	(15)
Discussion	134	(1)
Andrei Shleifer	134	(3)
How Do Financial Systems Affect Economic Performance?	137	(32)
Wendy Carlin
Colin Mayer
Introduction	137	(2)
Financial and Corporate Systems and Economic Performance	139	(5)
Financial Development and Economic Growth	144	(3)
Financial Systems, Corporate Systems, and Types of Economic Activity: Theory	147	(5)
Financial Systems, Corporate Systems, and Types of Economic Activity: Empirical Evidence	152	(4)
Conclusions	156	(13)
Discussion	160	(1)
Marco Betch	160	(6)
Vicente Salas	166	(3)
Information and Governance in the Silicon Valley Model	169	(32)
Masahiko Aoki
Stylized Factual Background	171	(4)
The Information Systemic Characteristic of the Silicon Valley Model	175	(9)
Governance of Innovation by Tournament	184	(6)
Further Institutional Ramifications of the Venture Capital Governance	190	(3)
Conclusions	193	(8)
Discussion	196	(1)
Miguel A. Garcia-Cestona	196	(5)
The Governance of the New Enterprise	201	(32)
Raghuram G. Rajan
Luigi Zingales
How Firms Differ from Markets	203	(4)
The Traditional Corporation in the Time of Berle and Means	207	(3)
Changes and Cause of Changes	210	(4)
Power in a Human Capital Organization	214	(7)
Consequences for Enterprise Governance	221	(3)
Conclusions	224	(9)
Discussion	227	(1)
Carmen Matutes	227	(2)
Joan Enric Ricart	229	(4)
Index	233