Shareholders Harmed by Regulation of Corporate Governance

For Immediate Release. Stakeholder models of corporate governance should be opposed, argues Dr Elaine Sternberg, author of Corporate Governance: Accountability in the Marketplace, the latest paper from the iea.

In this robust and comprehensively free-market defence of Anglo-American systems of corporate governance, the author argues that stakeholder models allow management and governments to run companies in their own interests.

Starting with a clear explanation of what corporate governance is, Sternberg demonstrates why the stakeholder, German and Japanese models are less capable than the Anglo-American model of achieving good corporate governance. She shows how, and why, regulation to improve corporate governance is typically counterproductive.

Properly understood, corporate governance consists of way