A Review of Corporate Governance Models

EasyChair Preprint 9299

Abstract

One of the most important factors that influences the success of a company is its corporate governance, the rules adopted and designed to provide the resilience structure for the whole business, to regulate the decision-making process, to support the relationships between the management of the companies and their shareholders and to solve any conflicts that may arise between these categories, protecting, on the one hand, the shareholders’ rights, and, on the other hand, ensuring the independence the management needs, in order to increase the performance and value of the company. There is no universal model of corporate governance. Corporate governance models and practices are different from one country to another, influenced by several factors, such as: the legislation, the history and culture of each country. Therefore, some companies consider that they achieve their goal as long as the company’s profitability and owners’ wealth increase, while others believe that the rights of all their stakeholders (employees, government agencies, customers, creditors) must be protected. In this paper, I have synthetized three main corporate governance models: the European model – oriented towards protection of all stakeholders, with their representatives in the supervisory boards and with a high ownership concentration; the Anglo-Saxon model – concerned about the protection of shareholders, including minority ones, with a very dispersed ownership; and the Japanese model – strongly influenced by culture and history, with an important role of the banks as the major capital providers.

Keyphrases: Corporate Governance, Ownership concentration, corporate governance models, mechanisms

@booklet{EasyChair:9299,
  author    = {Aida-Lavinia Neagoe},
  title     = {A Review of Corporate Governance Models},
  howpublished = {EasyChair Preprint 9299},
  year      = {EasyChair, 2022}}