Question

Explain the historical model of corporate governance

Answer 1

“Corporate governance” first came into vogue in the 1970s in the United States. Within 25 years corporate governance had become the subject of debate worldwide by academics, regulators, executives, and investors.

Three dominant models of corporate governance exist in contemporary corporations: the Anglo-US model, the German model, and the Japanese model. In one sense, the differences between these systems can be seen in their focuses. The Anglo-US model is oriented toward the stock market, while the other two focus on the banking and credit markets.