Book contents
- Frontmatter
- Contents
- Figures
- Tables
- Contributors
- Acknowledgements
- 1 Introduction: rethinking corporate governance – lessons from the global financial crisis
- Part I The failure of the market approach to corporate governance
- 2 Corporate governance causes of the global financial crisis
- 3 The failure of corporate governance and the limits of law: British banks and the global financial crisis
- 4 Where was the ‘market for corporate control’ when we needed it?
- 5 Information asymmetry and information failure: disclosure problems in complex financial markets
- 6 Finance, governance and management: lessons to be learned from the current crisis
- Part II Ownership, internal control and risk management: the roles of institutional shareholders and boards
- Part III Post-crisis corporate governance: the search for new directions
- Index
- References
2 - Corporate governance causes of the global financial crisis
Published online by Cambridge University Press: 05 August 2011
Book contents
- Frontmatter
- Contents
- Figures
- Tables
- Contributors
- Acknowledgements
- 1 Introduction: rethinking corporate governance – lessons from the global financial crisis
- Part I The failure of the market approach to corporate governance
- 2 Corporate governance causes of the global financial crisis
- 3 The failure of corporate governance and the limits of law: British banks and the global financial crisis
- 4 Where was the ‘market for corporate control’ when we needed it?
- 5 Information asymmetry and information failure: disclosure problems in complex financial markets
- 6 Finance, governance and management: lessons to be learned from the current crisis
- Part II Ownership, internal control and risk management: the roles of institutional shareholders and boards
- Part III Post-crisis corporate governance: the search for new directions
- Index
- References
Summary
This chapter seeks to penetrate the catastrophe of the global financial crisis to examine its specifically corporate governance causes. The origins of the crisis in the enthusiasm for deregulation of financial institutions and markets, and the rapid growth of securitization, are explored. The huge explosion of global derivatives is considered as the context in which risk management and corporate governance were abandoned by major financial institutions. The role of the rating agencies and of executive incentives in encouraging rather than managing risk is investigated. Finally, the international effort to coordinate a regulatory response to the crisis is considered.
- Type
- Chapter
- Information
- Corporate Governance and the Global Financial CrisisInternational Perspectives, pp. 28 - 49Publisher: Cambridge University PressPrint publication year: 2011
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