A Skeptical View of Financialized Corporate Governance
Journal of Economic Perspectives, Vol. 31 No. 3, 2017, pp 131-150
20 Pages Posted: 26 Jun 2017 Last revised: 10 Aug 2017
Date Written: June 26, 2017
Financialized corporate governance as commonly practiced causes significant inefficiencies and harm. Corporations and governments routinely fail to design and enforce rules that reduce the opacity of corporations, create effective commitments that prevent harm, and ensure proper accountability. The financial sector provides extreme illustrations of these governance failures, which persist despite repeated scandals and crises. Misleading narratives that obscure reality enable individuals in the private and public sectors, even in well-developed democracies, to abuse power with impunity.
Keywords: Political Economy of Corporation, Corporate Fraud, Political Bargains, Corporate Accountability, Corporate Settlements, Rent Seeking
JEL Classification: G3, P1, P16, N2
Suggested Citation: Suggested Citation