Economic Growth and Corporate Governance Imperfections

D'Orio, Giovanni; Tsenova, Tsvetomira

doi:10.2139/ssrn.1938327

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Economic Growth and Corporate Governance Imperfections

21 Pages Posted: 4 Oct 2011

See all articles by Giovanni D'Orio

Giovanni D'Orio

Università degli Studi della Calabria - Department of Economics and Statistics

Tsvetomira Tsenova

Bulgarian National Bank

Date Written: January 1, 2000

Abstract

This paper formally proves that economic outcomes are not independent from the corporate governance system and its ability to protect shareholders’ rights. This is achieved by extending a neoclassical growth model to incorporate an imperfectly functioning market for managerial labour enabling management to maximise own private benefit alongside profit.

Keywords: Economic growth, shareholders rights, corporate governance, speed of convergence

JEL Classification: E2, G3, L16, O11, O43, P12, P27

Suggested Citation: Suggested Citation

D'Orio, Giovanni and Tsenova, Tsvetomira, Economic Growth and Corporate Governance Imperfections (January 1, 2000). Available at SSRN: https://ssrn.com/abstract=1938327 or http://dx.doi.org/10.2139/ssrn.1938327