Corporate governance, capital theory, and corporate finance theory: An approach from property theory

Corporate Governance: Theory and Practice

Various theories and philosophies have provided the foundation for the development of alternative forms of corporate governance systems around the world. Furthermore, as economies have evolved through time it appears that corporate executives have deviated from the sole objective of maximizing shareholders’ wealth. Owners of the capital have responded to these forces for the purpose of preservi...

The Theory of Corporate Finance

agency theory in the corporate governance

the emergence and unprecedented growth of joint stock companies is undoubtedly one of the most significant economic developments.one of the outcomes of this development is the separation of ownership and control of the companies. such separation make it possible for the managers of the companies to make dicisions to serve their interes at the expense of the companies shareholders .this conflict...

Corporate Governance and Innovation: Theory and Evidence

We develop a theory of the e¤ects of external corporate governance mechanisms — such as takeover pressure — and internal mechanisms — such as compensation contracts and monitoring intensity — on innovation. Our theory generates the following testable predictions: (i) innovation varies non-monotonically in a U-shaped manner with takeover pressure; (ii) innovation increases with monitoring intens...

Corporate Governance and Innovation: Theory and Evidence

We develop a theory to show how external and internal corporate governance mechanisms a¤ect innovation. We show that there is a U-shaped relation between innovation and external takeover pressure, which arises from the interaction between expected takeover premia and private bene…ts of control. We show strong empirical support for the predicted relation using ex ante and ex post innovation meas...