¨A poorly conceived [corporate governance] system can wreak havoc on the economy by misallocating resources or failing to check opportunistic behaviors," states Wharton management professor Mauro Guillen in his paper, "Corporate Governance and Globalization: Is There Convergence Across Countries?"
Corporate scandals, like the alleged executive greed and accounting improprieties at energy giant Enron, have thrust corporate governance practices into the spotlight, illustrating the fundamental role they play in any economy.
But does corporate governance operate the same way in any economy? That has been a point of contention among academics and economists. Guillen writes that proponents of the so-called globalization thesis argue that cross-national patterns of corporate governance are converging or will converge on either the Anglo-Saxon shareholder-centered model found in the U.S. and the U.K., or some hybrid between the shareholder and stakeholder models typically found in Japan and Germany.
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