Corporate governance, ownership and global markets

ABSTRACT: The elimination of space and time barriers to the circulation of information and capital, the growing complexity and importance of business/stakeholder relationships, and the establishment of corporate social responsibility principles have changed the corporate governance approach of listed companies. Indeed, the prerequisites have been created to attenuate behavioural differences, which for a long time have characterized companies with wide ownership dispersion (outsider systems) and those with concentrated ownership or control (insider systems). This chapter analyses the conditions for the pervasive improvement of the corporate governance approach in a global perspective. The analysis shows that adhering to international principles and recommendations as well as establishing a social responsibility and sustainability approach facilitate the convergence between insider and outsider corporate governance systems. In particular, the shared medium- to long-term value orientation of top executives and investors is affirming regardless of the ownership structure of companies and the characteristics of risk capital markets.