SSRN-The Swedish Corporate Control Model: Convergence, Persistence or Decline? by Magnus Henrekson, Ulf Jakobsson:
"This paper explores the effects of deregulation and globalization on the dominant mode of corporate governance in Swedish public firms.The article first looks at the two basic models of governance and then speaks specifically about Sweden.
From the article:
"There are two basic models of corporate governance of public firms: (i) dispersed ownership and managerial control, and (ii) concentrated ownership and private blockholder control. The first model predominates in the Anglo-Saxon world,1 where common law judicial systems largely govern. The second model, which exists in several varieties,2 dominates in virtually all other countries."
The authors report that these is less "convergence" (i.e they are not becoming as similar to the Anglo-Saxon model as would have been predicted), firms are changing as the role of private equity and increased foreign ownership. Additionally they find that the overall importance of the stock market in Sweden is declining.
From the abstract:
"Instead, the control models with the most rapid growth in the most recent decades are found outside the stock market, notably private equity and foreign ownership. After a major revival of the Swedish stock market its importance for the Swedish economy is again in decline. Instead of adjustments in pertinent institutions and practices to ensure effectiveness of the corporate governance of Swedish public firms under these new conditions, a great deal of endogenous adjustment of the ownership structure has taken place""