The Geography Of Finance: Corporate Governance In A Global Marketplace

The Geography of Finance This page intentionally left blank The Geography of Finance Corporate Governance in the Global Marketplace Gordon L. Clark and Dariusz Wójcik 1 3 Great Clarendon Street, Oxford ox2 6DP Oxford University Press is a department of the University of Oxford. It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide in Oxford New York Auckland Cape Town Dar es Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi Shanghai Taipei Toronto With offices in Argentina Austria Brazil Chile Czech Republic France Greece Guatemala Hungary Italy Japan Poland Portugal Singapore South Korea Switzerland Thailand Turkey Ukraine Vietnam Oxford is a registered trade mark of Oxford University Press in the UK and in certain other countries Published in the United States by Oxford University Press Inc., New York © Gordon L. Clark and Dariusz Wójcik 2007 The moral rights of the authors have been asserted Database right Oxford University Press (maker) First published 2007 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, or under terms agreed with the appropriate reprographics rights organization. Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above You must not circulate this book in any other binding or cover and you must impose the same condition on any acquirer British Library Cataloguing in Publication Data Data available Library of Congress Cataloging in Publication Data Clark, Gordon L. The geography of finance : corporate governance in the global marketplace / Gordon L. Clark and Dariusz Wójcik. p. cm. Includes bibliographical references and index. ISBN-13: 978–0–19–921336–8 (alk. paper) 1. International finance. 2. Investments, Foreign. 3. Corporate governance. I. Wójcik, Dariusz, 1972– II. Title. HG3881.C5744 2007 2006039407 332
.042—dc22 Typeset by SPI Publisher Services, Pondicherry, India Printed in Great Britain on acid-free paper by Biddles Ltd., King’s Lynn, Norfolk ISBN 978–0–19–921336–8 1 3 5 7 9 10 8 6 4 2 For Ben Fisher and Ania This page intentionally left blank Contents List of Figures List of Tables Preface Acknowledgements viii ix xi xvi Part I. Global Finance and Europe 1. The Alchemy of Finance 2. Convergence in Corporate Governance 3 31 Part II. German Model(s) in Play 3. Portfolio Investors and the German Model 57 4. Geographical Foundations of Corporate Governance 81 5. Path Dependence and Transition 103 Part III. Managing Global Integration 6. Cross-Listing and the Market for Governance 133 7. Global Financial Markets as Standard-Setters 161 8. The Language of Finance 181 Bibliography Index 203 231 vii List