Theoretical Perspectives of Corporate Governance

Bulletin for Business and Economics, 3(4), 166-175.

10 Pages Posted: 14 Jan 2015 Last revised: 19 Mar 2015

See all articles by Ghulam Abid

Ghulam Abid

National College of Business Administration and Economics (NCBA&E)

Binish Khan

National College of Business Administration and Economics (NCBA&E)

Zeeshan Rafiq

National College of Business Administration and Economics (NCBA&E)

Alia Ahmed

National College of Business Administration and Economics (NCBA&E); ISOSS-Islamic Countries Society of Statistical Sciences

Date Written: January 13, 2015

Abstract

Corporate Governance is relatively a new area and its development has been affected by various theories from different domains including law, economics, finance and management. This article gives a theoretical overview within the discipline of corporate governance and also provides a review of how the main theory i.e., the agency theory as well as other theories like the stewardship theory, stakeholder theory, resource dependency theory and transaction cost economics theory have influenced the development of corporate governance. The study highlights the differences among these theories and their span over different disciplines with divergent scopes, along with the arguments on how these theories differ in their relevancy to fit-in various contexts. The study emphasizes the need for the development of a general theory of corporate governance in conjunction with the legal system (common law or civil law) and other actors. It gives a new mode of thinking and a new direction of research in analyzing corporate governance.

Keywords: Corporate Governance, Agency Theory, Stewardship Theory, Stakeholder Theory, Resource Dependency Theory, Transaction Cost Economics

JEL Classification: G34

Suggested Citation

Abid, Ghulam and Khan, Binish and Rafiq, Zeeshan and Ahmed, Alia, Theoretical Perspectives of Corporate Governance (January 13, 2015). Bulletin for Business and Economics, 3(4), 166-175., Available at SSRN: https://ssrn.com/abstract=2548941

Ghulam Abid (Contact Author)

National College of Business Administration and Economics (NCBA&E) ( email )

40/E-1, Gulberg-III
National College of Business Administration & Econ
Lahore, Punjab 54660
Pakistan

Binish Khan

National College of Business Administration and Economics (NCBA&E) ( email )

40/E-1, Gulberg-III
National College of Business Administration & Econ
Lahore, 54660
Pakistan

Zeeshan Rafiq

National College of Business Administration and Economics (NCBA&E) ( email )

40/E-1, Gulberg-III
National College of Business Administration & Econ
Lahore, 54660

Alia Ahmed

National College of Business Administration and Economics (NCBA&E) ( email )

40/E-1, Gulberg-III
National College of Business Administration & Econ
Lahore, Punjab 54660
Pakistan

HOME PAGE: http://www.ncbae.edu.pk/

ISOSS-Islamic Countries Society of Statistical Sciences ( email )

Plot No. 44-A, Civic Centre, Liaqat Chowk, Sabzaza
Lahore, Punjab 54660
Pakistan

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