Corporate Governance

Corporate Governance

Corporate governance has succeeded in attracting a good deal of public interest because of its apparent importance for the economic health of corporations and society in general. The development of increased interest in corporate governance reflects higher expectations by the investment community for greater effort by listed public companies to develop their own structures and procedures to ensure effective management and appropriate standards of corporate behavior.

However, the concept of corporate governance is poorly defined because it potentially covers a large number of distinct economic phenomenons. For example, Mathiesen (2002) considered corporate governance a field in economics that investigated how to secure or motivate efficient management of corporations by the use of incentive mechanisms, such as contracts, organizational designs and legislation. And an article in financial times (1997) said ¡°corporate governance----which can be defined nar...