Volume : VI, Issue : VII, July - 2017

DIVERGENCE OR CONVERGENCE: PARADOXES IN CORPORATE GOVERNANCE

Dr Sowmya K

Abstract :

 The study is a review paper to explore the various dimensions of the traditional governance models namely the Anglo-Saxon model and the German-Japan model. The study identifies the different strands of the researches on the various dimensions of these models and also on the possibility, challenges to the convergence of these governance mechanisms. The literature review on corporate governance models suggests that the two mechanisms differ oadly in their internal and external control mechanisms. The review considers agency theory as the fundamental theory explaining the need for governance structures. The traditional models of governance are moving towards a system of ‘dual convergence’, which is expected to result in a hyid model inculcating the best of both the worlds. However, the convergence in the true sense does not seem to be possible due to fundamental differences pertaining to cultural, economic, and legal and socio economic aspects confirming the presence of the paradox in the near future. The study explores the arguments in the existing literature about the diverging dimensions of the traditional models. It helps to understand the adaptation of the traditional governance models to the dynamically changing external and internal mechanisms of the firms. 

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Article: Download PDF    DOI : https://www.doi.org/10.36106/gjra  

Cite This Article:

Dr Sowmya K, DIVERGENCE OR CONVERGENCE: PARADOXES IN CORPORATE GOVERNANCE, GLOBAL JOURNAL FOR RESEARCH ANALYSIS : VOLUME-6 | ISSUE‾7 | JULY -2017

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