Factors Influencing Establishment and Existence of Corporate Governance Models

Abstract:     
Corporate Governance models vary from country to country however the main principles of every Corporate Governance model derives from fundamental mechanisms of governance as insider (stakeholder model) and outsider (shareholder model) systems. Insider model of corporate governance is mostly based on an interest of stakeholders and often ownership is concentrated (shares owned by family, banks or institutions) by aiming to reach long term goals. Outsider model of corporate governance as opposite to insider model has dispersed ownership (shares owned by individuals in stock markets) and aims to reach fast short term goals for wealth maximization of shareholders.

The present research paper proposes to illustrate information on various corporate governance models established on principles of above mentioned fundamental models and analyze the influence of political, cultural and legal factors on existence of corporate governance models.

Number of Pages in PDF File: 13

Keywords: corporate governance models, insider model, outsider model, factors affecting corporate governance, political influence on corporate governance, cultural influence, legal influence, establishment of corporate governance

JEL Classification: D40, G15, G30, G32, G39, H11

working papers series