Corporate Governance: Major Issue (original) (raw)
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The status and importance of corporate governance to organisations across the globe has been reflected in an explosion of research and writings conducted in the field. Scholars agreed that corporate governance definitions over the time attracted various controversy and scrutiny.
Corporate Governance Frequently Asked Questions
2016
The term "corporate governance" refers to the structures, rules, and processes through which companies pursue their objectives. In other words, "corporate governance is the system by which companies are directed & controlled." 1 It encompasses a variety of issues, ranging from shareholder rights to a company's internal decision-making processes and control systems.
The concept of corporate governance
VISIÓN DE FUTURO, 2021
This article aimed to identify the different concepts of corporate governance, in this sense, the first section presents a review of the literature based on the Methodi Ordinatio in relation to the concept of corporate governance (CG), followed by the revision of the theories from which it is studied: Theory of the agency; the shareholder or stockholder theory; the resource dependency theory; Stakeholder theory; the theory of Stewardship or Management Theory, the approach based on knowledge and corporate governance and the performance of the company, finally, the conclusion of the study in which it stands out that the objective of CG theories is not to study how managers govern - that would lead us to confuse the term governance with administration - but rather how it is
Role of Corporate Governance in Organization
Following the great financial infamy in big companies, like Enron, World Com, Adelphi, Cisco and …, one of the most issues noticed by researchers and suggested from investors is Corporate Governance, addressing the need for company management control, dividing economical unit from its ownership and improving the performance of the board of managers, auditors, accounting system, internal control, and finally maintaining investors and stakeholders' rights. Using better managers in companies results in improvement of their performance, leading to stockholders rights too; consequently financial yields will be increased and company control will be better performed. Corporate Governance importance in the world is at some extent that Standard & Poors institute has introduced following multiple criteria to measure corporate governance status: ownership structure, financial stockholders relationships, structure and how-to-act of the board of managers, and clearance and disclosure of the ...
Corporate Governance: Its scope, concerns and theories
Corporate Governance, 1997
This paper outlines the conceptual, cultural, contextual and disciplinary scope of the rapidly evolving topic of corporate governance. As a basis for improving the rigour of research and analysis, some definitions are suggested. Reasons for the diversity of viewpoints and concerns are considered. To provide an orientation for new scholars and those from specialised disciplines, recent surveys of corporate governance are reviewed from their ethnocentric, contextual, and intellectual contingencies. The prospects of developing the topic as a "science of organization" are considered along with areas for future research.
European Journal of Business and Management, 2014
This paper has two major objectives; the first objective is to shed light on the dilemma concerning the debate on corporate governance definition, whereas the second objective is to identify the major causes for calls to improve corporate governance. The last three decades has witnessed exponential increase in corporate governance awareness, corporate governance regulations, and a drive for improved corporate governance in addition to an interesting debate on the definition of corporate governance. Concerning the debate on the definition of corporate governance the extant literature revealed that there is significant disagreement among researchers on a single definition for corporate governance. On one extreme some corporate governance definitions are considered too narrow due to their limited focus on protection of shareholders' wealth while disregarding the interest of other stakeholders. On the other some have been criticized for being too board as a result focusing on too many stakeholders without paying attention to the sole reason for the firm existence which is the maximization of shareholders wealth. The authors view corporate governance as a set of mechanisms aimed at mitigating the negative impact of agency conflict. This view focuses on resolving the main issue of corporate governance, which is the conflict of the interests between owners of the firm and executive management. Therefore the authors strongly argue that mitigating this conflict of interest is of special benefit to the firm, the stakeholders' and the economy as a whole and hence any definition for corporate governance should encompass the agency conflict. In relation to the second objective based on the review of the relevant literature, five reasons have been identified as the major causes for calls to improve corporate governance. These causes are a) increase in firm size and complexity, b) separation of ownership and management, c) exponential growth of capital markets, d) increase in fraud cases and financial crises and, e) increased awareness of corporate governance impact on firm financial performance.
Introduction to Corporate Governance
2018
While corporate governance has attracted a great deal of attention among the developed countries of the world it has clearly become a global issue to be addressed in some fashion by all countries regardless of their stage of economic development. Given that, it is appropriate to note the definition of corporate governance that was used by the Organisation of Economic Co-operation and Development (“OECD”) in its 2004 Principles of Corporate Governance:
ROLE OF CORPORATE GOVERNANCE IN ORGANIZATIONS
The importance of corporate governance in today?s modern and aggressive business environment cannot be denied.The main motive of corporate governance is to enhance effective, entrepreneurial and efficient management that can deliver the long-term success of the company.Many multinational companies are following corporate governance.In the current scenario corporate governance is a hot topic , it is a relatively new field of study. Achieving best practices has been hindered by a patchwork system of regulation, a mix of public and private policy makers.and the lack of an accepted metric for determining what constitutes successful corporate governance. policy.Following the great financial scandal in big companies, like Enron,Satyam, World Com, Adelphi, Cisco and ?, one of the most topics raised by researchers and from investors is Corporate Governance.It clearly convey the necessity for company management control, division of economical unit from its ownership and enhancing the performance of the board of managers, auditors, accounting system, internal control, and finally maintaining investors and stakeholders\' rights. Using efficient managers in companies results in growth of their performance, leading to stockholders rights too; consequently financial performance will be increased and company control will be better performed.Corporate Governance importance in the world is at some extent that Standard & Poors institute has introduced following multiple criteria to measure corporate governance status: ownership structure, financial stockholders relationships, structure and how-to-act of the board of managers, and clearance and disclosure of the information. Due to the topic importance, this article will reflects the corporate governance and its conceptual framework, types of existed theories, types of the corporate governance, and comparing them with each others as well as attempting to develop corporate governance. studies applied guided bone regeneration while three studies did not.
What Is Corporate Governance and Why Is It Receiving More Attention ?
2013
The literature shows that good corporate governance generally pays—for firms, for markets, and for countries. It is associated with a lower cost of capital, higher returns on equity, greater efficiency, and more favorable treatment of all stakeholders, although the direction of causality is not always clear. The law and finance literature has documented the important role of institutions aimed at contractual and legal enforcement, including corporate governance, across countries. Using firm-level data, researchers have documented relationships between countries’ corporate governance frameworks on the one hand and performance, valuation, the cost of capital, and access to external financing on the other. Given the benefits of good corporate governance, firms and countries should voluntarily reform more. Resistance by entrenched owners and managers at the firm level and political economy factors at the level of markets and countries partly explain why they do not.
Corporate Governance: An organisational attribute or an academic exercise
The Market, 2021
This conceptual paper provides an overview of the theory and application to the practice of corporate governance. The evolution of corporate governance theory and definitions are described, taking an international perspective. The paper offers insights at a national level into governance experiences within the UK, Ireland, and Cyprus. The paper reviews four classic corporate governance theories most often cited in the literature. Each theory is critically discussed and applied at an organisational level. The authors introduce language theory, sociology, psychology and organisational theory as a means of uncovering the changing governance epistemologies as corporate governance is more than economic and legal theories. A summary table outlining key foci, actors, features and critique of each model is provided so as to enable the reader easily identify each in practice. The paper concludes with recommendations for future research. Key terms: Corporate governance, board, behavioural theory, agency theory, stakeholder theory, resources dependency theory, stewardship theory, conceptual paper.