Search results
Results from the WOW.Com Content Network
The paper provides a theoretical framework that illustrates the role of large shareholders in corporate governance and control. For instance, large shareholders can be crucial in solving agency problems between managers and other shareholders. In addition, they can monitor managers and intervene when necessary in order to protect their profits.
In economic theory, the principal-agent approach (also called agency theory) is part of the field contract theory. [36] [37] In agency theory, it is typically assumed that complete contracts can be written, an assumption also made in mechanism design theory. Hence, there are no restrictions on the class of feasible contractual arrangements ...
The latter include the structural definition from the Cadbury Report, which identifies corporate governance as "the system by which companies are directed and controlled" (Cadbury 1992, p. 15); and the relational-structural view adopted by the Organisation for Economic Cooperation and Development of "Corporate governance involves a set of ...
Corporate governance consists of the set of processes, customs, policies, laws and institutions affecting the way people direct, administer or control an organization. Corporate governance also includes the relationships between people within an organization, (the stakeholders) and the corporate goals.
Because cash flow rights ownership by the CEO and better corporate governance are found to mitigate such behaviour, we interpret the higher pay as evidence of agency problems between shareholders and managers affecting workers' pay. [17] In a very real sense, unions and managers compete to offer benefits to employees. [18]
Stakeholder management theory, stakeholder project management theory, and stakeholder government agency theory have all contributed to the intellectual foundation for multistakeholder governance. The history and theory of multistakeholder governance however departs from these models in four ways.
In modern contract theory, the “theory of the firm” is often identified with the “property rights approach” that was developed by Sanford J. Grossman, Oliver D. Hart, and John H. Moore. [ 45 ] [ 46 ] The property rights approach to the theory of the firm is also known as the “Grossman–Hart–Moore theory”.
Managerialism is the idea that professional managers should run organizations in line with organizational routines which produce controllable and measurable results. [1] [2] It applies the procedures of running a for-profit business to any organization, with an emphasis on control, [3] accountability, [4] measurement, strategic planning and the micromanagement of staff.