A Review of Corporate Governance Literature

Abstract

A company's procedures, structure, and techniques for managing and directing its operations
and affairs are collectively referred to as corporate governance. By holding managers accountable and
improving the company's performance, corporate governance also increases long-term shareholder
value. By defining the interests of shareholders and management independently, it also removes
ownership and control conflicts. In order to determine the efficacy of corporate governance
mechanisms in businesses and organizations, this study examines a large body of literature on
corporate governance practices. The reduction of the principal-agent dilemma as a result of the firms'
efficient corporate governance mechanisms is another emphasis of the article.