The United States, indeed much of the OECD, seems caught in a certain malaise. Take three salient problems, the “triad”: significant inequality; economic insecurity; and slow economic growth. In the search for causes and remedies, some have identified the governance of large public corporations, “corporate governance,” as a first order cause. To some extent I think there are important corporate governance elements in each of these problems, potentially remediable. Even with significant corporate governance changes, however, the pressures from globalizing product and capital markets will produce an on going need for complementary government policies to mitigate adjustment costs that no firm can internalize over the long run.
Assistant Professor of Finance,
Wharton Finance, University of Pennsylvania
Professor of Finance
University of Naples Federico II
Glenn and Mary Jane Creamer Associate Professor of Business Administration, Harvard Business School