When capital markets rule

摘要

The rivalry between different models of corporate governance partly reflects a broader battle over the best way of financing a modern economy. In this battle, the world's growing equity culture plays a crucial role, for it turns on one big question: is it better for economies if their companies rely mainly on capital markets for equity and debt, or on banks? It is a question that is pertinent not just to the debate about the respective merits of the Japanese/German model and the American/ British one, but also to the choices that emerging economies should make about their future.