Prior research in the accounting literature has not often focused on the role of the state in corporate governance in a historical sense, preferring instead to study relationships between shareholders and directors and the effects of various corporate governance mechanisms on the economic performance of companies. A broader view of corporate governance would consider thesystem of laws, rules, and regulations that control corporations, thereby emphasizing the role of the state in corporate governance. The purpose of this paper is to illustrate, through a historical discussion and analysis of the ways in which the state has enacted its role in corporate governance, that there have been continual linkages and interdependencies between corporate governance and the state. We believe that acknowledging the historical role of the state in corporate governance will lead to a better understanding of the need for continuing government regulation and supervision of corporate entities in an increasingly globalized world.