Question

Agency theory states that the problems arising in corporations because top management no longer is willing to bear the brunt of their decisions unless they own a substantial amount of stock in the corporation. Is it true? How is it different from Stewardship Theory?

Answer 1

Corporate governance is the mixture of rules, processes or laws by which businesses are operated, regulated or controlled. The term includes the internal and external factors that affect the interests of a company's stakeholders, including shareholders, customers, suppliers, government regulators and management.

Answer:

This lesson defines and discusses the concept of corporate governance, the key players involved in corporate governance, the roles of these key players, and the primary types of issues faced with regard to corporate governance.