Governance and Competitive Advantage

Abstract

This paper uses a transactions economics theory of financial governance to reconcile and integrate the evidence on inter‐ and intra‐country differences in corporate finance and corporate governance. We argue that one reason for the competitive advantage demonstrated by Japan in recent years is Japan's greater use of high capability financial governance and its consequent reduction of risks that would otherwise be borne.

Citation

Johnson, L.D. and Neave, E.H. (1994), "Governance and Competitive Advantage", Managerial Finance, Vol. 20 No. 8, pp. 54-68. https://doi.org/10.1108/eb018486