Reforming Corporate Governance in France, Japan, and Korea
Publication Year: 2007
In Entrepreneurial States, an innovative examination of the comparative politics of reform in stakeholder systems, Yves Tiberghien analyzes the modern partnership between the state and global capital in attaining structural domestic change. The emergence of a powerful global equity market has altered incentives for the state and presented political leaders with a "golden bargain"-the infusion of abundant and cheap capital into domestic stock markets in exchange for reform of corporate governance and other regulatory changes.
Drawing on extensive archival research and interviews with policy and corporate elites in Europe and East Asia, Tiberghien asks why states such as Korea and France have embraced this opportunity and engaged in far-reaching reforms to make their companies more attractive to foreign capital, whereas Japan and Germany have moved forward much more grudgingly. Interest groups and electoral institutions have their impacts, but by tracing the unfolding dynamic of reform under different constraints, Tiberghien shows that the role of political entrepreneurs is critical. Such policy elites act as mediators between global forces and national constraints. As risk takers and bargain builders, Tiberghien finds, they use corporate reform to reshape their political parties and to stake out new policy ground. The degree of political autonomy available to them and the domestic organization of bureaucratic responsibility determine their ability to succeed.
Published by: Cornell University Press
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Title Page, Copyright
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Tables and Figures
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Preface and Acknowledgments
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When do governments choose to pursue reforms that promise uncertain and long-term benefits, yet assure short-term costs? When do they get away with them? How do political leaders evaluate their chances of getting away with them? These questions lie at the core of the corporate restructuring...
1. Political Entrepreneurs and the Corporate Restructuring Dilemma
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Corporate restructuring involves high political risks in stakeholder or coordinated economies.1 These systems integrate a complementary set of industrial organizational features (large groups, cross-shareholdings), stable employment practices, bank-centered corporate finance, and welfare corporatism...
2. A Story of Change and Divergence
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The degrees of strategic political autonomy and options for effective bureaucratic delegation define the reform capacity of political entrepreneurs as they mediate the incentives of the golden bargain. In this chapter, I systematically analyze the components of this argument and present...
3. France: Effective but “Shameful” Reforms
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France is the kingdom of invisible reforms. It has the ability to generate low-visibility yet fast-flowing structural change ahead of its societal alignments. France acts first and justifies second. There is a great French paradox: despite a majority anti-globalization discourse and strong popular...
4. Japan: Of Change and Resistance
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Since the mid-1990s, under new global incentives, Japan has responded with a transformed political discourse focused on the necessity of structural reform and with some significant institutional change. However, the actual change has remained selective and has kept the major pillars of Japan’s system...
5. Korea: Systemic Transformation
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It is no secret that the Korean miracle crashed in December 1997, and that Korea had to accept stringent conditions in exchange for an IMF bailout. Likewise, the relative speed and depth of structural reforms in Korea in the wake of the financial crisis are now well known and analyzed.1 The resumption...
6. Political Entrepreneurs and the Great Transformation of the Automobile Industry
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This chapter brings the analysis to the level of the firms and focuses on the implications on the ground of the variety of national responses to the golden bargain. It focuses on one major industry that is both economically significant and politically salient in all three countries: the automobile industry...
Conclusion: From Social Contract to Golden Bargain?
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In the late 1990s, many OECD countries engaged in far-reaching corporate structural reforms. While these reforms may appear to be mere technical measures or legal revisions, their cumulative effect amounts to a major transformation of the post-1945 industrial and social contract. Corporate...
Appendix. Evaluation of Corporate Reform Intensity in France, Japan, Korea, and Germany
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Page Count: 280
Publication Year: 2007
Series Title: Cornell Studies in Political Economy