The Science of Corporate Governance

25 Pages Posted: 20 Jul 2002

See all articles by Shann Turnbull

Shann Turnbull

International Institute for Self-Governance; Sustainable Money Working Group; New Garden City Alliance

Date Written: October 2001

Abstract

Transaction Byte Analysis (TBA) is introduced as a basis to ground corporate governance in the science of information and control described as cybernetics. TBA provides fundamental criteria for evaluating the governance integrity of any type of organisation because all individuals possess physiological and neurological limits to receive, store, manipulate and transmit information measured in bytes. Cybernetics laws of requisite variety in communication channels, decision making centres and control agents provide strategies for overcoming human variations and their limitations in managing complexity. The paper identifies the cybernetic advantages of compound boards and concludes that a unitary board cannot reliably govern complex firms.

Keywords: Bytes, Control, Compound board, Cybernetics, Distributed decisions, Firm architecture, Governance, Information, Regulation, Requisite variety, Supplementation, Transaction Byte Analysis, Unitary boards

JEL Classification: B49, D20, D70, D80, G30, L20, L30, M10

Suggested Citation

Turnbull, Shann, The Science of Corporate Governance (October 2001). Available at SSRN: https://ssrn.com/abstract=316939 or http://dx.doi.org/10.2139/ssrn.316939

Shann Turnbull (Contact Author)

International Institute for Self-Governance ( email )

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HOME PAGE: http://independent.academia.edu/ShannTurnbull/CurriculumVitae
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