DOI: 10.5176/2010-4804_2.3.224
Authors: Ramazanali Royaee, Bahareh Banitalebi Dehkordi
Abstract:
Following the great financial infamy in big companies, like Enron, World Com, Adelphi, Cisco and …, one of the most issues noticed by researchers and suggested from investors is Corporate Governance, addressing the need for company management control, dividing economical unit from its ownership and improving the performance of the board of managers, auditors, accounting system, internal control, and finally maintaining investors and stakeholders’ rights. Using better managers in companies results in improvement of their performance, leading to stockholders rights too; consequently financial yields will be increased and company control will be better performed. Corporate Governance importance in the world is at some extent that Standard & Poors institute has introduced following multiple criteria to measure corporate governance status: ownership structure, financial
stockholders relationships, structure and how- to- act of the board of managers, and clearance and disclosure of the information. Due to the issue importance, this article will
define the corporate governance and its conceptual framework, types of existed theories, types of the corporate governance, and comparing them with each others as well as attempting to develop corporate governance.
Keywords: Corporate Governance, agency theory,
transactions cost theory, stockholders theory, organization
and stewardship theory
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