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 uncertainand long-term benefits, yet assure short-term costs? When do they get awaywith them? How do political leaders evaluate their chances of getting awaywith them? These questions lie at the core of the corporate restructuringdilemma, particularly in the stakeholder economies of Asia and Europe....
1Political Entrepreneurs and theCorporate Restructuring Dilemma
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Corporate restructuring involves high political risks in stakeholder or co-ordinated economies.1 These systems integrate a complementary set of in-dustrial organizational features (large groups, cross-shareholdings), stableemployment practices, bank-centered corporate finance, and welfare cor-poratism that set them apart from the more liberal systems in the United...
2A Story of Change and Divergence
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What explains the variation in national responses to the golden bargain,even among relatively similar economies? Why have Korea and Francebeen able to go further in reforming their economic structure thanThe degrees of strategic political autonomy and options for effectivebureaucratic delegation define the reform capacity of political entrepre-...
3France: Effective but “Shameful” Reforms
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France is the kingdom of invisible reforms. It has the ability to generatelow-visibility yet fast-flowing structural change ahead of its societal align-ments. France acts first and justifies second. There is a great French para-dox: despite a majority anti-globalization discourse and strong popularsupport for the social contract, French governments (of all political colors)...
4Japan: Of Change and Resistance
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Since the mid-1990s, under new global incentives, Japan has respondedwith a transformed political discourse focused on the necessity of structuralreform and with some significant institutional change. However, the actualchange has remained selective and has kept the major pillars of Japan’s sys-tem in place: What explains this relative endurance of the core institutional...
5Korea: Systemic Transformation
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It is no secret that the Korean miracle crashed in December 1997, and thatKorea had to accept stringent conditions in exchange for an IMF bailout.Likewise, the relative speed and depth of structural reforms in Korea in thewake of the financial crisis are now well known and analyzed.1 The resump-tion of rapid economic growth in the years 1999–2003, after the deep re-...
6Political Entrepreneurs and the GreatTransformation of the Automobile Industry
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This chapter brings the analysis to the level of the firms and focuses on theimplications on the ground of the variety of national responses to thegolden bargain. It focuses on one major industry that is both economicallysignificant and politically salient in all three countries: the automobile in-dustry. The size and stakes involved in this industry are so high that all gov-...
Conclusion: From Social Contractto Golden Bargain?
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In the late 1990s, many OECD countries engaged in far-reaching corporatestructural reforms. While these reforms may appear to be mere technicalmeasures or legal revisions, their cumulative effect amounts to a majortransformation of the post-1945 industrial and social contract. Corporatestructural reforms are measures instigated by the state to facilitate the pro-...
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Page Count: 280
Publication Year: 2007
Series Title: Cornell Studies in Political Economy