Innovation and International Convergence of Corporate Governance Mechanism:A Framework for Analysis

The root cause of institutional change is the potential profitability resulting from the out-of-balance institution.However,institutional change cannot get rid of the restriction of path-dependency and political procedure.As to the corporate governance,the only purpose of both the induced and imposed institutional changes is to pursue profit more and more as possible.In the circumstances of globalization,due to the gain from institutional competition and reduced cost of institutional transplantation,the transplantation of corporate governance mechanism between different economies/countries prevails increasingly and,as a result,the corporate governance mechanism in different countries is converging to a certain extent.But,the absolute convergence of different corporate governance would never happen for the reason of path dependency and the role of interest groups.