The Political Paradox of Corporate Governance Reform: Why the Center-Left is the Driving Force Behind the Rise of Financial Capitalism.

We analyyze corporate governance reform in the U.S., Germany, France, and Italy toshow that political actors and parties matter decisively in institutional and regulatory reform processes. By examining the country cases of the United States, Germany, France, and Italy, we seek to explain a striking political paradox of finance capitalism and corporate governance reform: center-left political parties are the driving force behind corporate governance reform and the institutional adjustment to finance capitalism, while the right of center parties tend to protect managerialism and organized capitalism while resisting reform. We confirm this general hypothesis and offer a number of explanations for this peculiar political dynamic. We combine theories of phases and varieties of capitalism with existing research on parties and interest groups to fashion a better understanding of the political dynamics underlying economic change. [ABSTRACT FROM AUTHOR]