Page 26 - DIVA_No.18_2005

Interview with Mr Espen Eckbo,

I nterview Tuck Centennial Professor of Finance,

Tuck School of Business, Dartmouth College,

Hanover, New Hampshire

debt), dividends and voting rights
(if equity). However, these rights
are not worth much if they cannot
be protected, either by court
actions or by direct actions by the
investor. If the rights are not pro-
tected, then corporate finance
becomes expensive. Thus, coun-
tries around the world are devel-
oping systems of investor protec-
tion that promote financial and
economic development.

Globalization has become a
controversial issue on which
the disadvantaged poor (or at
least those who purport to
speak for them) are on one
Professor Eckbo is the Director Why did the Tuck School of side and the rich and wealthy
of the Centre of Corporate Business set up this centre of (or at least those who advo-
Governance at the Tuck School Corporate Governance? We cate the virtues of globaliza-
of Business. The Tuck School of would be grateful if you could
Business is the first graduate tion) are on the opposing side.
kindly explain the reason
school of business and one of the Does the centre have a stand
behind this decision; your rai-
top management schools in the on this debate and why?
son d'etre if I may express it
world.
this way?
Principles of good corporate
governance enhance the ability
Professor Eckbo, what does it I founded the Centre for of all interest groups, also
mean to be a Tuck Centennial Corporate Governance in 1999 labour, to raise concerns and
(before all the corporate scandals influence the terms and fulfil-
Professor?
broke out). The centre promotes ment of their contracts. As such,
academic research and brings into corporate governance develop-
Tuck was founded in the year the classroom the ongoing debate ments help lower the controversy
1900 and is today the world's on corporate governance issues over international trade. On the
oldest MBA business school pro- and reforms. Corporate gover- other hand, we do not go into
gram. Year 2000 was the centen- nance is a system of checks and specifics of the labour contracts.
nial celebration for the school. balances designed to protect That's the domain of labour
As part of the capital campaign investor rights. To raise capital, unions and other parties to the
for the centennial, they raised corporations around the world labour contract itself. You may
funds for a chair in finance, the sell financial contracts. These wonder why financial contracts
Tuck Centennial Chair, which contracts specify certain rights, need special protection. The
was given to me. such as interest and principal (if problem is this: When the public
28 Diva 1.2005