On the (Political) Origin of ‘Corporate Governance’ Species
Journal of Economic Surveys, 31(2):393-409, 2016
25 Pages Posted: 17 Mar 2016 Last revised: 8 Aug 2017
Date Written: October 16, 2015
Although economies, business practices, and living standards have converged since WWII, corporate structures continue to differ among the advanced economies of the world. Looking at the diversity of corporate structures of large-sized firms around the world (and over time) would fascinate Charles Darwin. This work develops a critical review of the literature on political determinants of corporate governance through the Darwinian theory (including some Lamarckian aspects). As Darwin, in his work On the Origin of Species, explicates the diversity of species of tortoises, finches, and iguanas of the Galapagos Islands, so Darwinism may contribute in understanding the origin and the persistence of corporate diversity. In particular, this article takes into account politics-driven variations, their inheritances, and the subsequent selection of advantageous ‘corporate’ attributes.
Keywords: Corporate governance, Darwin, politics, path-dependency
JEL Classification: G30, K22, J50
Suggested Citation: Suggested Citation