The Law and Economics of Corporate Governance

The Law and Economics of Corporate Governance

Changing Perspectives

Edited by Alessio M. Pacces

In this timely book, the law and economics of corporate governance is approached from various angles. Alessio Pacces shows that perspectives are evolving and that they differ between the economic and the legal standpoint, as well as varying between countries. A group of leading scholars offers their views and provides fresh empirical evidence on existing theories as well as developing new theoretical insights based on empirical puzzles. They all analyse the economics of corporate governance with a view to how it should, or should not, be regulated.

Comment – Can the Firm be Seen to Emerge out of a Pincer Movement of Efficiency Pressures?

J. (Hans) van Oosterhout

Subjects: economics and finance, law and economics, law - academic, corporate law and governance, law and economics


J. (Hans) van Oosterhout INTRODUCTION Professor Pagano’s chapter ‘Marrying in the Cathedral: A Framework for the Analysis of Corporate Governance’,1 is the kind of rich and well-written think-piece one rarely finds these days in the peer-reviewed academic journals that publish work on corporate governance. Apparently, the double-blind review process that most of these journals rely on functions like a cookie-cutter in which rich and original inputs are ‘fundamentally transformed’ into the rather narrowly focused and often highly standardized outputs that most of these journals tend to publish. Yet in spite of the wealth of ideas, the fruitful associations and the elegant prose, Professor Pagano’s chapter also raises a number of questions and issues to which I will attend in this short reaction. This by no means implies that I think ill of the chapter, or that I do not value the rich insights it develops. On the contrary, I just undertake to perform the kind of job that is expected of a discussant, although I will not deny that my focus on what I believe to be problematic in Professor Pagano’s chapter also demonstrates the kind of character deformation that academics who, like myself, have never had a real job, often suffer from. A PINCER MOVEMENT OF EFFICIENCY PRESSURES? As I understand it, Professor Pagano’s chapter has the rather ambitious aim of developing a theory of the firm. The thrust of the chapter is that 1 In this volume, p. 264. 290 Comment – Can the firm be seen to...

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