Agency Theory

Corporate Governance Structure

1.0 Introduction

Corporate Governance is a set of rules and practices that companies use to guide their decisions and actions. As these laws determine the way the company decides to run, the management process has a great impact on the company’s performance. Small businesses using professional principles in the process of Corporate Governance Structure do not always have the highest profit or the highest value of securities and the execution of those who have other advantages. General observers consider stock prices as a measure of company performance. While previous studies have found that there is a positive relationship between corporations and corporate governance, these relationships do not always lead to higher stock prices. In fact, the USC study from financial …

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