Corporate Governance and Economic Development: Identifying Critical Institutional Reforms

197 Pages·2022·2.169 MB·English

by  Anna Lanoszka

CORPORATE GOVERNANCE AND
ECONOMIC DEVELOPMENT
This book explores the links between different corporate governance systems and
their impact on economic development. It focuses on how institutional reforms,
legislative changes and codified measures have influenced performance at the firm
and country level. Drawing on detailed cases from the UK, USA, China, India,
Poland, Brazil, Russia and South Africa, this book takes a truly international
and comparative approach to understanding the relationship between regulatory
frameworks and economic development.
This will be a valuable text for students and researchers of economic development,
corporate governance, international political economy, and economic and business
history.
Anna Lanoszka is Professor of International Economic Relations at the University
of Windsor, Canada.

CORPORATE
GOVERNANCE
AND ECONOMIC
DEVELOPMENT
Identifying Critical
Institutional Reforms
Anna Lanoszka
Cover image: © phongphan5922 / Getty Images
First published 2023
by Routledge
4 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
605 Third Avenue, New York, NY 10158
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2023 Anna Lanoszka
The right of Anna Lanoszka to be identified as author of this work has
been asserted in accordance with sections 77 and 78 of the Copyright,
Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or
utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in
any information storage or retrieval system, without permission in writing
from the publishers.
Trademark notice: Product or corporate names may be trademarks or
registered trademarks, and are used only for identification and explanation
without intent to infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
A catalog record for this book has been requested
ISBN: 978-1-138-33592-9 (hbk)
ISBN: 978-1-138-33594-3 (pbk)
ISBN: 978-0-429-44345-9 (ebk)
DOI: 10.4324/9780429443459
Typeset in Bembo
by Apex CoVantage, LLC
To Mark who always shines the light over the horizon

CONTENTS
List of Abbreviations x
1 Towards an Effective System of Corporate Governance 1
I. Beyond a Simplistic View of Corporate Governance 1
II. The Shareholders Versus Stakeholders Dilemma 4
III. H istorical Transformations of the Company Role and
Structure 7
IV. C orporations and Ongoing Processes of Institutional
Change 12
2 Imperfect System – Lessons From the UK 17
I. T he East India Company and the Path of Institutional
Change 18
II. E mergence of Domestic Corporations – Foundational
Legislations 22
III. T he Inter-war Difficulties in the Absence of Professional
Managers 27
IV. F rom Heavy State Interventionism to Thatcher’s Liberal
Reforms 30
V. C ontemporary Shareholders-Centered Corporate Governance
Framework 36
VI. C orporate Governance and Economic Development
in the UK 41
viii Contents
3 Progress Among Crises – Lessons From the US 47
I. E arly Days: Corporate Charters and the Framing of the US
Constitution 48
II. A nti-trust Laws: Towards the Federalization of Corporate
Governance 54
III. P ost-war Institutions, Rights of Corporations, and the Rise
of Multinationals 61
IV. D ealing With Crises: From Sarbanes-Oxley to the
Dodd-Frank Act 68
V. C orporate Governance, the State, and Economic
Development in the US 75
4 It Is Our Way With Western Characteristics – Lessons
From China 81
I. F rom the Empire to Socialism: Arbitrary Rules for the
Centralized System 82
II. P artial Open-Door Reforms and Growth Under Extractive
Institutions 85
III. L egislative Reformist Developments on the Road to the
WTO 89
IV. D ilemmas of the Corporate Sector: Private vs.
State-Controlled Entities 98
V. C orporate Governance and Economic Development
in China 106
5 The Importance of the Family – Lessons From India 112
I. C olonial Legacy, Family Groups, and Economic Experiments
by the State 113
II. F irst Crisis-Driven Reforms and the Power of the
Establishment 119
III. D esirable Code and the Business-Government Collusion
Problems 126
IV. H azards of Low-Risk Corporate Sector and Modi’s
Economic Nationalism 132
V. C orporate Governance, the State, and Economic
Development in India 138
6 Escalating Problems – Lessons From Russia, Poland, Brazil,
and South Africa 144
I. S tate-Capitalism and Ominous Corporate
Paternalism – Russia 144
Contents ix
II. P rogress Among Remains of the Interventionist
Economy – Poland 151
III. M issed Opportunities and Pitfalls of Protectionist
Past – Brazil 156
IV. H igh Costs of Incomplete Post-apartheid
Transformation – South Africa 162
V. C orporate Governance, the State, and Economic
Transitions 166
7 Conclusion 172
Index 179