383 Book reviewGatekeepers: the Professions and Corporate Governance SAGE Publications, Inc.200810.1177/1032373208091533 John C.JrCoffee Oxford University Press, Oxford, 2006 JosephineMaltby University of York Corporate governance has been very thoroughly studied in the aftermath of the disasters at the beginning of this century, as Coffee admits at the beginning of his book – “academics tend to plough and re-plough the same furrow” (p.1). But, he argues, previous studies have concentrated on directors, shareholders and the rela- tionship between them, to the exclusion of the professions which play a key role – that of gatekeeping – in the working of governance. The book deals with the effect- iveness of four professions in the USA – auditors, lawyers, securities analysts and ratings agencies – in that role. Corporate gatekeepers, for Coffee, play two distinct roles. They prevent offending by excluding the offender from the market, for instance giving a quali- fied audit opinion. And they allow a company into the market by giving the signal that it is trustworthy – a positive audit opinion, a “buy” recommendation from an investment analyst. Gatekeeping should prevent corporate infractions and encour- age ethical behaviour on their part: it should also motivate the professions to avoid
Book review: Gatekeepers: the Professions and Corporate Governance: John C. Coffee Jr. Oxford University Press, Oxford, 2006
Abstract
383 Book reviewGatekeepers: the Professions and Corporate Governance SAGE Publications, Inc.200810.1177/1032373208091533 John C.JrCoffee Oxford University Press, Oxford, 2006 JosephineMaltby University of York Corporate governance has been very thoroughly studied in the aftermath of the disasters at the beginning of this century, as Coffee admits at the beginning of his book – “academics tend to plough and re-plough the same furrow” (p.1). But, he argues, previous studies have concentrated on directors, shareholders and the rela- tionship between them, to the exclusion of the professions which play a key role – that of gatekeeping – in the working of governance. The book deals with the effect- iveness of four professions in the USA – auditors, lawyers, securities analysts and ratings agencies – in that role. Corporate gatekeepers, for Coffee, play two distinct roles. They prevent offending by excluding the offender from the market, for instance giving a quali- fied audit opinion. And they allow a company into the market by giving the signal that it is trustworthy – a positive audit opinion, a “buy” recommendation from an investment analyst. Gatekeeping should prevent corporate infractions and encour- age ethical behaviour on their part: it should also motivate the professions to avoidPreview Only. This article cannot be rented because we do not currently have permission from the publisher.
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Book review: Gatekeepers: the Professions and Corporate Governance: John C. Coffee Jr. Oxford University Press, Oxford, 2006
Maltby,Josephine
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, Volume 13 (3): 383
SAGE – Aug 1, 2008
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