Mainstream theories of corporate governance and the corporate governance – firm performance relationship
This paper reviews the mainstream theories of corporate governance and the relationship between corporate governance structures and frm fnancial performance. We show that the four predominant theories often employed to study the corporate governance – frm performance relationship are agency theory,...
Đã lưu trong:
| Tác giả chính: | |
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| Định dạng: | Journal article |
| Ngôn ngữ: | English |
| Được phát hành: |
Đại học Quốc gia Tp. Hồ Chí Minh
2022
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| Những chủ đề: | |
| Truy cập trực tuyến: | http://scholar.dlu.edu.vn/handle/123456789/846 |
| Các nhãn: |
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| Thư viện lưu trữ: | Thư viện Trường Đại học Đà Lạt |
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| Tóm tắt: | This paper reviews the mainstream theories of corporate governance and the relationship between
corporate governance structures and frm fnancial performance. We show that the four predominant theories often employed to study the corporate governance – frm performance relationship are agency theory, stewardship theory, resource dependence theory, and institutional theory.
In spite of being an overwhelmingly predominant theoretical approach in corporate governance
studies, agency theory has recently been criticized for not fully reflect corporate governance practices in various institutional contexts. It is, therefore, necessary to re-examine the traditional agency
framework to understand the corporate governance – frm performance relationship in various institutional environments. There are also calls for the application of a multi-theoretical approach to
capture the complex nature of the corporate governance – frm performance relationship. It is also
clear from our review that the effect of corporate governance on frm performance is inconclusive
as empirical fndings concerning this relationship are mixed in different analysis contexts. It is argued that such inconclusive fndings of the corporate governance – frm performance relationship
may be caused by the national institution differences and the imperfection of estimation techniques. Several recent studies in corporate governance support the view that the implementation
of corporate governance mechanisms in a country is influenced by its institutional environment.
For this reason, the effectiveness of corporate governance mechanisms also varies from country
to country, or in other words, it is country-specifc. This suggests that future research focusing on
cross-national comparative contexts may provide more insight or in-depth information on the corporate governance – frm performance relationship. We also suggest that the potential mediating
impacts of institutional characteristics on the corporate governance – frm performance relationship should be taken into consideration when conducting cross-country comparative corporate
governance studies |
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