Corporate Governance: An Introduction to Theory and Practice

In its 2004 Principles of Corporate Governance, the Organisation of Economic Co-operation and Development described corporate governance as involving a set of relationships between a company’s management, its board, its shareholders and other stakeholders that provide the structure through which the objectives of the company are set, the means of attaining those objectives are determined and the methods of monitoring performance are established. This book provides an introduction to the range of theories that have been developing regarding governance structures and the internal and external factors that influence them, beginning with a survey of definitions and descriptions of corporate governance. The book continues to describe governance structures in various legal systems around the world and global governance standards that have been developed to guide companies on establishing and maintaining relationships among the management, board of directors, controlling shareholders, minority shareholders and other stakeholders. Subsequent chapters describe corporate governance systems around the world including the Anglo-American, Germanic European, Latin European and East Asian models; the role of the state in corporate governance and regulatory frameworks; management of “agency” issues; influences on corporate governance systems (i.e., capital, labor and management); tools for analyzing governance systems and assessing the governance environment at the country level; corporate governance in developing countries; governance problems and reforms; governance best practices; governance and privately-held companies; and governance of non-corporate and non-profit entities.