Share
Explore BrainMass

Corporate Governance System: compare market-centered to bank-centered systems

It is said that the United States has a market centered corporate governance system, wherein as Germany has a bank centered system.

What does the two designations mean? How would you compare the corporate governance systems of the United States and Germany. How did both countries come to have the systems they have? and what are the consequences of each system?.

Solution Preview

It is said that the United States has a market centered corporate governance system, wherein as Germany has a bank centered system.

What does the two designations mean?

The market centered corporate governance system of United States means that corporate governance system is designed to protect the interests of the stock holders more than that of the lenders. On the other hand the German system is designed to protect the interests of the lenders more than the interests of the shareholders.

How would you compare the corporate governance systems of the United States and Germany?
The corporate ...

Solution Summary

In a 350 word solution, the response compares the two systems of managing corporate governance. the historic significance is explained as well as the consequences and constraints as a result.

$2.19