However, one other factor that cannot be ignored within the framework of a long run analysis, a factor which is closely linked to institutional criteria, is the role of politics and political institutions. Douglass C. North and Mary M. Shirley have recently underlined the overwhelming influence of politics and political institutions as determinants of financial development. 10 Peter Gourevitch and James Shinn highlight that it is these factors, within the broader context of regulation, that are relevant for corporate governance. They situate features of this scenario within the framework of the political system whereas other authors have done so within the.
