Journal Article

Corporate governance as political insurance: firm-level institutional creation in emerging markets and beyond

Stanislav Markus

in Socio-Economic Review

Published on behalf of Society for the Advancement of Socio-Economics

Volume 6, issue 1, pages 69-98
Published in print January 2008 | ISSN: 1475-1461
Published online May 2007 | e-ISSN: 1475-147X | DOI: http://dx.doi.org/10.1093/ser/mwl036
Corporate governance as political insurance: firm-level institutional creation in emerging markets and beyond

More Like This

Show all results sharing these subjects:

  • Moral Philosophy
  • Corporate Social Responsibility
  • Welfare Economics
  • Political Economy
  • Economic Sociology

GO

Show Summary Details

Preview

What do we know about the politics of corporate governance in emerging markets? Although the state-level institutions have been amply explored, firm-level dynamics remain under-theorized. Complementing the orthodox emphasis on external finance as causal force behind the adoption of ‘minority shareholder protections’, the article outlines an alternative mechanism for firms operating in political settings with heightened risk of state intrusion. The Anglo-Saxon governance institutions can serve domestic managers as a strategy to build alliances with foreign stakeholders so as to counteract a dirigiste government. Empirically, the author seeks to explain the implementation of internationally accepted standards of corporate governance by Russia's big business between 1999 and 2004. The project disaggregates ‘corporate governance’ into specific institutions and examines their quality at the firm level. The causal inference links the shift in state policy vis-à-vis corporate property to the improved treatment of minority owners by the company insiders.

Keywords: corporate governance; institution-building; property rights; emerging markets; transition economies; state-business relations; G3 corporate finance and governance; P14 property rights; P2 socialist systems and transitional economies

Journal Article.  11546 words.  Illustrated.

Subjects: Moral Philosophy ; Corporate Social Responsibility ; Welfare Economics ; Political Economy ; Economic Sociology

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.