Friday, June 8, 2012

CONYON M., SHIPILOV Andrew
Is There an Anglo-Saxon Model? Historical and Social Network Accounts of the Differences in Ownership and Control in the UK, Canada and the U.S. in Small Worlds of Corporate Governance Bruce Kogut (Ed.) MIT Press (2012) 53-76

In this chapter we consider the governance of firms in the UK, Canada and the U.S. We outline the Anglo-Saxon agency model of ownership and control which has been the bedrock of much finance analysis since the classic Berle and Means insight. We show that the model is not homogenous and there are important differences between these economies that seem to broadly follow this model. In addition, we consider a ‘small-world’ model of ownership and control, which documents the degree of connectedness between actors and the distance between them. Our new empirical results show the pattern of ownership and control in U.K., Canada and the U.S. can be considered a small-world: path-lengths are short and clustering is high. However, there are significant differences in the small-world measures across these countries supporting our thesis for the distinctiveness of their corporate governance models.