Corporate governance theory

Author: Ning Xiangdong
Publisher:
Publish Date: 2005-01-01
Features: Corporate governance issues can be divided into two types: one is agency corporate governance issues, and the other is expropriation corporate governance issues. The former deals with the relationship between shareholders and managers, while the latter involves the interests among shareholders. If managerial corruption cannot be corrected and restrained, the company's value will plummet, and the modern joint-stock company system would not exist. Therefore, investors have come up with various methods to incentivize and constrain professional managers, leading to the emergence of many mechanisms to constrain corporate controllers.