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Varieties of Institutional Investors and National Models of Capitalism: The Transformation of Corporate Governance in France and Germany

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  • Michel Goyer

    (Warwick Business School, Michel.Goyer@wbs.ac.uk)

Abstract

This article examines the rise of foreign ownership in France and Germany. I argue that the firm-level institutional arrangements of workplace organization constitute the most significant variable to account for the greater attractiveness of French firms over their German counterparts to short-term, impatient capital—namely, hedge and mutual funds. I demonstrate how key notions of the Varieties of Capitalism perspective—institutional interaction, institutional latency, and the distinction between institutional framework and the mode of coordination that follows from these institutions—provide important theoretical insights to account for the different structures of foreign ownership in France and Germany.

Suggested Citation

  • Michel Goyer, 2006. "Varieties of Institutional Investors and National Models of Capitalism: The Transformation of Corporate Governance in France and Germany," Politics & Society, , vol. 34(3), pages 399-430, September.
    • Handle: RePEc:sae:polsoc:v:34:y:2006:i:3:p:399-430
    DOI: 10.1177/0032329206290427
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    References listed on IDEAS

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    1. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters, in: Understanding the Process of Economic Change, Princeton University Press.
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    Cited by:

    1. Darcillon, Thibault, 2015. "Corporate governance reforms and political partisanship: an empirical analysis in 16 OECD countries," Business and Politics, Cambridge University Press, vol. 17(4), pages 661-696, December.
    2. Pierre-Louis Choquet, 2019. "Piercing the corporate veil: Towards a better assessment of the position of transnational oil and gas companies in the global carbon budget," Post-Print hal-04401241, HAL.
    3. Michel Aglietta & Antoine Rebérioux, 2012. "Financialisation and the Firm," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 23, Edward Elgar Publishing.
    4. Vail, Mark I., 2007. "The evolution of bargaining under austerity: Political change in contemporary French and German labor-market reform," MPIfG Discussion Paper 07/10, Max Planck Institute for the Study of Societies.
    5. Claude Dupuy & Stéphanie Lavigne & Dalila Nicet‐Chenaf, 2010. "Does Geography Still Matter? Evidence on the Portfolio Turnover of Large Equity Investors and Varieties of Capitalism," Economic Geography, Clark University, vol. 86(1), pages 75-98, January.
    6. Virginia Doellgast & Ursula Holtgrewe & Stephen Deery, 2009. "The Effects of National Institutions and Collective Bargaining Arrangements on Job Quality in Front-Line Service Workplaces," ILR Review, Cornell University, ILR School, vol. 62(4), pages 489-509, July.
    7. Kenneth Amaeshi & Olufemi Amao, 2009. "Corporate Social Responsibility in Transnational Spaces: Exploring Influences of Varieties of Capitalism on Expressions of Corporate Codes of Conduct in Nigeria," Journal of Business Ethics, Springer, vol. 86(2), pages 225-239, March.
    8. Daniel Haberly, 2014. "White Knights from the Gulf: Sovereign Wealth Fund Investment and the Evolution of German Industrial Finance," Economic Geography, Clark University, vol. 90(3), pages 293-320, July.
    9. Claude Dupuy & Stephanie Lavigne & Dalila Chenaf-Nicet, 2016. "Where Do “Impatient” Mutual Funds Invest? A Special Attraction for Large Proximate Markets and Companies with Strategic Investors," Post-Print hal-03897273, HAL.
    10. Florence Palpacuer & Amélie Seignour, 2019. "Resisting via Hybrid Spaces : The Cascade effect of a workplace Struggle against Neoliberal Hegemony," Post-Print hal-02436750, HAL.
    11. Stefan Petranov & Milena Angelova, 2012. "Development and prospects of the corporate management systems in the European union," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 110-122.
    12. Jean-Paul POLLIN, 2010. "l eurosystème et l'intégration financière européenne," LEO Working Papers / DR LEO 832, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    13. Scheuplein, Christoph, 2020. "Wer kommt, wenn Private Equity geht? Langfristige Wirkungen auf die Eigentümerstruktur deutscher Unternehmen," Forschung Aktuell 10/2020, Institut Arbeit und Technik (IAT), Westfälische Hochschule, University of Applied Sciences.
    14. Nahee Kang, 2014. "Towards middle-range theory building in development research: Comparative (historical) institutional analysis of institutional transplantation," Progress in Development Studies, , vol. 14(3), pages 221-235, July.
    15. Christophe Volonté, 2015. "Culture and Corporate Governance: The Influence of Language and Religion in Switzerland," Management International Review, Springer, vol. 55(1), pages 77-118, February.
    16. Braun, Benjamin, 2016. "Gross, greed, and ETFs: The case for a microfounded political economy of the investment chain," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 17(3), pages 6-13.
    17. Lazar Christian & Metzner Yves & Rapp Marc Steffen & Wolff Michael, 2013. "Remuneration of Non-Executive Directors in German Listed Firms: An Empirical Analysis from a Practitioners’ Perspective," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 4(1), pages 1-16, June.

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