| Original language | English |
|---|---|
| Title of host publication | Encyclopedia of Sustainable Management |
| Editors | Samuel Idowu, René Schmidpeter, Nicholas Capaldi, Liangrong Zu, Mara Del Baldo, Rute Abreu |
| Place of Publication | Netherlands |
| Publisher | Springer |
| Pages | 1-5 |
| Number of pages | 5 |
| ISBN (Electronic) | 9783030020064 |
| DOIs | |
| Publication status | Published - 26 Mar 2022 |
Abstract
Corporate governance is a term used to describe accountability and control of business organizations, including the legal corporation. There are both broad and narrow definitions. A broad definition includes not only internal organizational structures and processes, such as the board of directors and members, but extends to include markets, employees, regulators, and other stakeholders (Hopt and Teubner 1984). A narrow definition limits the term to the interaction between at least the two decision-making bodies in the legal corporation, namely, the board of directors (Coffee 1986; La Porta et al. 2000; Shleifer and Vishny 1997).
Corporate governance is an interdisciplinary study (Clarke 2017). The topic is an area of analysis and research in law, economics, sociology, and management studies. The different disciplines examine rights and duties (law), incentives and efficiency (economics), norms and organizations (sociology), and decision-making and performance (management) in relation to corporate direction and control. As an interdisciplinary area of research, results of corporate governance research can be difficult to reconcile and synthesize due to methodological incompatibilities.
Of particular interest to economic analysis of corporate governance are four specific markets – the market for finance, the market for management talent, the product market, and the market for corporate control. Each of these markets exerts pressure on the management constraining some decisions while facilitating others. Further, each of these markets is subject to analysis by the different disciplines mentioned earlier.
Corporate governance is an interdisciplinary study (Clarke 2017). The topic is an area of analysis and research in law, economics, sociology, and management studies. The different disciplines examine rights and duties (law), incentives and efficiency (economics), norms and organizations (sociology), and decision-making and performance (management) in relation to corporate direction and control. As an interdisciplinary area of research, results of corporate governance research can be difficult to reconcile and synthesize due to methodological incompatibilities.
Of particular interest to economic analysis of corporate governance are four specific markets – the market for finance, the market for management talent, the product market, and the market for corporate control. Each of these markets exerts pressure on the management constraining some decisions while facilitating others. Further, each of these markets is subject to analysis by the different disciplines mentioned earlier.