Corporate Governance

1st article of Aguilera and Jackson: The variety of CG is described based on the standard VOC model (geographical approach). The following determinants are identified (we could put the figures from the article into our ppt):

1. Capital

a. Degree of ownership concentration

b. Various types of capital possess different identities (3 dimensions) :

i. Whether capital pursues financial/strategic interests

ii. The degree of commitment/liquidity of capital stakes

iii. Exercise of control through debt/equity

c. Property rights j- 3 models of CG :

i. Shareholder sovereignty model

ii. Constitutional model

iii. Liberal market

d. Financial systems : bank based vs market based

e. Interfirm networks : existence of multiplex relationships

2. Labor

a. Strategies of internal participation vs external control – Degree of internal/external control depends on:

i. Representation rights given to workers (information, consultation, co-determination)

ii. Organization of unions (class, occupation, enterprise models)

iii. Institutions of skill formation (subject to national education) – 5 main skill formation institutions (state provision, free markets, institutional companies, firm networks, corporatist associations)

b. Portable vs firm-specific skills: option to exit the firm

3. Management

a. Autonomy vs commitment

b. Financial vs functional

c. Closed (internal promotion) vs open labor market (higher risks of termination, vacancies are filled through external labor markets)

2nd Article. Movements and organizational form. (I am not sure how we can really use this article but maybe we can develop on the idea of the movement effects on the formation of the cooperative alternatives to corporations)

3rd article. Corporate ownership around the world (probably the most useful article)

Firms:

1. Widely held

2. With ultimate owners (20 and 10 percent rules)

a. Family/individual

b. The State

c. Widely- held financial institution (bank, insurance company)

d....