How Institutions Affect the Governance of Firms – Prof. Giorgio Zanarone (HEC Lausanne)

In this episode of the CLE Vlog & Podcast series, Prof. Giorgio Zanarone (HEC Lausanne) and Karol Rutkowski (ETH Zurich) talk about Prof. Zanarone's recent paper "Relationships in the Wild: How Institutions Affect the Governance of Firms". In their study, Zanarone and his co-authors Gani Aldashev (ULB) and Heikki Rantakari (Rochester) develop a relational contracting model to describe how firms, either privately owned or state owned, perform in the shadow of a ruler. After setting the paper in the context of the Washington consensus and the best practices of governance, Prof. Zanarone gives a summary of the model, shortly outlines its main implications and presents two interesting examples. Paper References:Gani Aldashev – Université Libre de BruxellesHeikki Rantakari – University of RochesterGiorgio Zanarone – HEC LausanneRelationships in the Wild: How Institutions Affect the Governance of Firms Aldashev-Rantakari-Zanarone-May-23.pdf (chaire-eppp.org)Audio Credits for Trailer:AllttA by AllttA https://www.youtube.com/watch?v=ZawLOcbQZ2w