Economic Growth and Corporate Governance Imperfections
21 Pages Posted: 4 Oct 2011
Date Written: January 1, 2000
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