Globalization and corporate governance convergence?
Subtitle: a cross-country analysis
By: Tarun Khanna, Joe Kogan, Krishna Palepu
Contributors: Kogan, Joe; Palepu, Krishna G., 1954-; Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 02-041; Working paper (Harvard Business School. Division of Research) -- 02-041
Publisher: Division of Research, Harvard Business School
Published: 2001
Place of publication: Boston
Language: eng
Number of pages: 54
Description: Some scholars have argued that globalization should pressure firms to adopt a common set of the most efficient corporate governance practices, while others maintain that such convergence will not occur because of a variety of forms of path-dependence. With hitherto unused data from 24 developing countries and 13 European countries, we search for evidence that globalization is correlated with convergence of corporate governance. We distinguish "convergence in form" from "convergence in function," and de jure from de facto convergence. We find robust evidence of de jure convergence inform at the country level. Interestingly, this is not driven by convergence to U.S. standards. Rather pairs of economically interdependent countries appear to adopt common corporate governance standards. In contrast to the de jure results, we find virtually no evidence of de facto convergence in corporate governance in form or function in a battery of estimations at the country, industry and firm levels.
Notes: Includes bibliographical references.