New Paths in German Finance and Corporate Governance?

This paper has two parts. The first presents empirical evidence documenting the transformation of the German financial and corporate governance systems. The second part of the paper explores this case from a path dependency theoretical framework. It is argued that both institutions systems (finance and corporate governance) have moved onto new institutional paths (trajectories). The paper explores in particular the issue of exogenous versus endogenous sources of change. [ABSTRACT FROM AUTHOR]