Agency Problem and the Role of Corporate Governance
Year: 2008
Type: preprint
Abstract: This paper is an attempt to identify various agency relationships that may exist in the economic and business life and the related problems that may arise due to such relationships. It also identifies the role of various corporate governance mechanisms such as the ownership structure, compensation, composition of the Board of Directors, the duties and responsibilities of the executive and non-executive directors, regular monitoring by shareholders, and takeover devices, voting rights of shareholders, detailed disclosure of company information that are material for decision making by interested parties etc. in mitigating the agency problems. Though no individual corporate governance mechanism is a perfect one, a careful selection of individual and/or combination of these serves a better purpose.
Source: SSRN Electronic Journal
Institutions: University of Dhaka, University of Otago
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1487938299