Corporate Governance Reforms and the Dichotomous Worlds Hypothesis: Towards a Plurality of Corporate Governance Philosophies

54 Pages Posted: 6 Jan 2006

See all articles by Pursey P.M.A.R. Heugens

Pursey P.M.A.R. Heugens

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Jordan Otten

RSM Erasmus University

Date Written: November 2005

Abstract

The dichotomous worlds hypothesis holds that corporate governance systems worldwide are either based on the Anglo-American shareholder model or the Eurasian stakeholder model. We suggest a more fine-grained classification, based on five corporate governance philosophies - complementary systems of beliefs on whether and how managers ought to be kept in check. These philosophies are validated through a content analysis of the corporate governance reform codes of 38 countries around the globe.

Keywords: dichotomous worlds, corporate governance philosophies, comparative corporate governance, managerial control, managerial empowerment, scale development

JEL Classification: G34, G38, P50

Suggested Citation

Heugens, Pursey P.M.A.R. and Otten, Jordan, Corporate Governance Reforms and the Dichotomous Worlds Hypothesis: Towards a Plurality of Corporate Governance Philosophies (November 2005). Available at SSRN: https://ssrn.com/abstract=873991 or http://dx.doi.org/10.2139/ssrn.873991

Pursey P.M.A.R. Heugens

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands
0031 10 408 2365 (Phone)
0031 10 408 9012 (Fax)

Jordan Otten (Contact Author)

RSM Erasmus University ( email )

P.O. Box 1738
Rotterdam, 3000 DR
Netherlands

HOME PAGE: http://jordanotten.googlepages.com

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