Corporate Governance in the Aftermath of the Global Financial Crisis, Volume IV

Chapter 5

Future of Corporate Governance

Introduction

Corporate governance has traditionally been viewed as the mechanism for aligning the interests of management with those of shareholders. More specifically, the role of corporate governance has been to reduce agency costs and to create long-term shareholder value by focusing on the decision-monitoring responsibilities of the board of directors and the decision-management functions of senior executives. This role has recently evolved in creating shared value for all stakeholders, including shareholders and non-shareholding stakeholders such as creditors, suppliers, customers, employees, government, society, and the environment. This chapter presents the future of corporate governance in the ...