Varieties of corporate governance models: a review and synthesis

Abstract

This chapter reviews and synthesizes the models of corporate governance and assesses whether recent developments in corporate governance practices may lead to integrative corporate governance model. The chapter begins with the taxonomies of corporate governance: capital and labour-related dimensions. This followed by a critical review of three dominant models, Anglo-Saxon, Continental European and Japanese models. We then then attempt to evaluate the extent which globalization, past historical experiences affect the convergence of the models and influence practices in developing and emerging countries. We document that the Anglo-Saxon and Continental European models remain the dominant corporate governance systems worldwide. The argument often put forward by the researchers that globalization, financial crisis and regionalization would lead to convergence of corporate governance practices towards a harmonized model remains elusive. At best convergence is limited to the adoption of codes and principles of good corporate governance rather than implementation of best practices.