Politics and Corporate Governance Aula 8 Ciência Política CGAE FGV-EAESP
Topics • Corporate Governance: Definition, Concepts, and Propositions for Management • Aggregate Analysis: Politics and Corporate Governance (Sinn & Gourevitch, 2006) • Alternatives to Aggregate Analysis: a) Concepts/Categories b) Small n comparisons c) Case Studies • Conclusions: Politics & Corporate Governance • Bibliography
1) Definition: Corporate Governance 2004 OECD Principles of Corporate Governance, “corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders. Corporate Governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined” (OECD 2004: 11).
Marco Zero = Bearle & MeansThe Modern Corporation and Private Property, (1932) 2 Book I, Property in Flux : 2.1 I Property in transition • 2.2 II The appearance of the corporate system • 2.3 III The concentration of economic power • 2.4 IV The dispersion of stock ownership • 2.5 V The evolution of control • 2.6 VI The divergence of interest between ownership and control 3 Book II, Regrouping of Rights: 3.1 I Evolution of the modern corporate structure • 3.2 II Power over participation accruing to shares of stock • 3.3 III Power over the routing of earnings as between shares of stock • 3.4 IV Power to alter the original contract rights of security holders • 3.5 V The legal position of management • 3.6 VI The legal position of "control“ • 3.7 VII Corporate powers as powers in trust • 3.8 VIII The resultant position of the stockholder 4 Book III, Property in the Stock Markets : 4.1 I The function of the public market • 4.2 II Flotation and bankers' disclosure • 4.3 III Disclosure by the corporation to the market • 4.4 IV Management in the market 5 Book IV, Reorientation of Enterprise : 5.1 I The traditional logic of property • 5.2 II The traditional logic of profits • 5.3 III The inadequacy of traditional theory • 5.4 IV The new concept of the corporation
Instituto Brasileiro de Governança Corporativahttp://www.ibgc.org.br/Home.aspx
Propriedade Dispersa = Sem Acionista >20%, Propriedade Dominante = Algum Acionista 20-50% Propriedade Familiar = Membros de Familia / Fundação >50% Outras = >50% Ações Fonte: Governança Corporativa: Padrões Internacionais e Evidências Empíricas no Brasil nos Anos 90, Nelson Siffert Filho http://www.fundoamazonia.gov.br/SiteBNDES/export/sites/default/bndes_pt/Galerias/Arquivos/conhecimento/revista/rev906.pdf
GRUN, Roberto. Convergência das elites e inovações financeiras: a governança corporativa no Brasil. Rev. bras. Ci. Soc. [online]. 2005, vol.20, n.58, pp. 67-90. ISSN 0102-6909.
Variedades de Governança Corporativa? Academy of Management Review, 2003, Vol. 28, No. 3, 447–465.
Aggregate Analysis: Shinn & Gourevitch, Politics and Corporate Governance, Princeton University Press, 2006
3 Theories about Aggregate Relations: Varieties of Capitalism (VOC) vs MinorityShareholderProtection (MSP) vs QualityCorporate Law (QCL)
Alternative to Aggregate Analysis:Small-n Comparisons Question: If France > Germany in Corporate Governance, what impact in markets & Development?
Alternative to Aggregate Analysis:Case Studies Martin Höpner, “Corporate Governance in Transition: Ten Empirical Findings on Shareholder Value and Industrial Relations in Germany” Max-Planck-Institut für Gesellschaftsforschung, Köln MPIfG Discussion Paper 01/5
Shareholder Orientation Index/% Shareholding by Institutional Investor
Análise de Redes Höpner, Martin/ Krempel, Lothar (2003): Ein Netzwerk in Auflösung: Wie die Deutschland AG zerfällt, in: MPIfG-Jahrbuch 2003/04, Köln 2004, S. 9-14. Mendes-Da-Silva, Wesley. Conselhos de Administração no Brasil e Redes Sociais
“Deutschland AG” Source: Höpner, Martin/ Krempel, Lothar (2003): Ein Netzwerk in Auflösung: Wie die Deutschland AG zerfällt, in: MPIfG-Jahrbuch 2003/04, Köln 2004, S. 9-14. 1997
Alternatives to AggregateAnalysisandSociologyof Networks (REDES): 1) Concepts2) Small-n Comparisons3) Case Studies “Global Forces, Political Mediation, and the Fragmentation of Corporate Governance Patterns: The Cases of France, Japan, and Korea” Yves Tiberghien, Harvard Academy & WCFIA, work in progress, 2004