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The Nordic Corporate Governance Model

Published online by Cambridge University Press:  11 April 2016

Steen Thomsen
Steen Thomsen*
Affiliation:
Copenhagen Business School, Denmark
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Abstract

The Nordic countries – Denmark, Norway, Sweden, and Finland—have attracted attention in recent years. Some elements of the Nordic model—particularly the welfare state—are well understood, but its governance characteristics remain elusive to the international audience. This article reviews Nordic governance and discusses its relevance as a development paradigm. The article quantitatively documents the existence of a Nordic governance model using data from the World Bank, Transparency International and other sources. Secondly, it is shown how Nordic corporate governance – Nordic civil law, concentrated ownership, semi two-tier board structures, employee representation and low-powered managerial incentives – has been shaped by the welfare state in ways consistent with systemic corporate governance theories. The article concludes with a skeptical discussion of the Nordic model as a development paradigm.

Type
Articles
Information
Management and Organization Review , Volume 12 , Issue 1 , March 2016 , pp. 189 - 204
Copyright
Copyright © The International Association for Chinese Management Research 2016 

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