Corporate Governance Reforms and the Dichotomous Worlds Hypothesis: Towards a Plurality of Corporate Governance Philosophies
54 Pages Posted: 6 Jan 2006
Date Written: November 2005
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: Suggested Citation