Corporate Geography of Canada: Insights into a Multi-Jurisdictional Model of Corporate Governance

Comparative corporate governance has long focused on national models of corporate governance with particular attention paid to the balance of influence between divergent path dependence and convergent global market forces. Within this debate, the Canadian model of corporate governance has received little attention and has long been assumed to be an extension of the U.S. model. An analysis of the corporate geography of Canada demonstrates that the path-dependent forces of Canada's resource-dependent economic development remain a principal determinant in contemporary corporate Canada. Continued resource dependence in combination with a system of asymmetric federalism has led to a distinctively multi-jurisdictional model of corporate governance. As corporate interests are provincially distinct because of the heterogeneous distribution of natural resources and markets across Canada, this model may lead to provincial lock-in and an associated degree of managerial entrenchment.