40 Years of Evolving Corporate Governance

This article examines changes in corporate governance, in Europe and in the U.S.A, from the late 1970s to the present. The financial liberalisation and globalisation movements have been associated with a rise of investment funds in the equity capital of large listed companies, in the 1980s and 1990s. At the same time, legal reforms have enhanced the rights of these minority shareholders. As a result, significant changes in corporate governance practices have taken place (composition of company boards, executive compensation, profit distribution, etc.). In the 2000s, we observe a shift towards a governance less focused on the return on investment for minority shareholders. A number of rules and practices have developed, aimed at limiting the short-term effects of market finance and at fostering the ecological and social transition.