Corporate Governance : A Theoretical Perspective of Ownership and Control

This book highlights the theoretical aspects of Corporate Governance. Of all other Corporate Governance theories such as resource dependence and institutional theory, the epistemological basis of these theories remains to be agency theory. This has, therefore, been pointed out by some literatures to be the source of inconclusive results regarding what ought to be best practices and desirable firm's corporate governance characteristics. The fundamental argument here is that, relying completely on a single theoretical approach will not provide an adequate understanding of the corporate governance process and practices because such an approach lacks multiple motives which bring about firms participation in the governance process. Principally, agency theory carries a base knowledge system of corporate governance while remaining theories just provide explanation for the relationship between different elements within corporate governance system.