The proposed hypothesis of European corporate governance change is contrasted with existing explanations of corporate governance from a range of academic disciplines. It is argued that, although the hypothesis advanced in the book is based on the rational behavior of social actors, it is not assumed that corporate governance outcomes will necessarily converge on the most “efficient” outcome (e.g., in terms of minimizing the cost of capital for the firm). Nor is it assumed that there is a necessary equality between de jure and de facto corporate governance outcomes (as argued by many legal scholars).
Keywords: European corporate governance; economic theory of the firm; legal origin; political science; economic sociology
Chapter. 9702 words.
Subjects: International Business
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