Why do different countries have such different financial systems? Is one system better than the other? This text argues that the view that market-based systems are best is simplistic, and suggests that a more nuanced approach is necessary.The main internal governance system is the board of directors, and the main external governance system is the market ... of shares in Japan means that even though there are no legal impediments to hostile takeovers, they do not occur. It has been widely argued that the main bank system has substituted for the standard Anglo-American corporate governance systems. In this system, a large bank, which is a major provider of funds to the firm, monitors its activities and ensures that theanbsp;...
|Title||:||Comparing Financial Systems|
|Author||:||Franklin Allen, Douglas Gale|
|Publisher||:||MIT Press - 2000|