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Watson, Susan; Vasudev, P.M. --- "Introduction" [2017] ELECD 1409; in Watson, Susan; Vasudev, M. P. (eds), "Innovations in Corporate Governance" (Edward Elgar Publishing, 2017) 1

Book Title: Innovations in Corporate Governance

Editor(s): Watson, Susan; Vasudev, M. P.

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781786432841

Section: Chapter 1

Section Title: Introduction

Author(s): Watson, Susan; Vasudev, P.M.

Number of pages: 22

Abstract/Description:

Why is there a need for corporate governance? Many academics and financiers argue that the disciplines of the capital markets on their own will cause corporate managers to take corrective action to improve performance. As early as 1992, Martin Lipton, the founding partner of the famous New York mergers and acquisitions law firm Wachtell, Lipton, Rosen & Katz, critiqued the argument saying it would ultimately be up to history to judge whether the argument had validity (Lipton and Lorsch 1992, 59–60). History has finally spoken. The catalyst has probably been the Global Financial Crisis (GFC) of 2008, although it has taken some time for the alchemy of change to take hold. This book is the third collection that we have co-edited. The first, Corporate Governance after the Financial Crisis (Vasudev and Watson 2012), addressed the immediate aftermath of the GFC of 2008–09 where early hopes of a fundamental reconsideration of the tenets of the economic system seemed to have been dashed by 2010. The world looked much the same at that time. Ultimately though, states and governments recognized that old certainties had been swept away and were now grappling with the implications of new thinking about the ways in which the role and nature of corporations should be viewed and, therefore, regulated.