Enhancing Board Effectiveness

21Shareholders and Institutional Investment

Kalu Ojah and Chris van der Hoven

Introduction

Agency problems, as a feature of publicly traded firms, will remain an important concern for scholars and policymakers so long as we continue to organize production in the “corporation” legal form of business. Similarly, efforts at mitigating the attendant problems of the principal-agent relationship will also remain a preoccupation (Manne, 1965; Jensen & Meckling, 1976; Berle & Means, 1991).¹ And it is for these efforts that “corporate governance” exists.²

Among others, La Porta et al. (2000), Denis (2001), Estrin and Revezer (2011), and most recently Ngwu et al. (2017), have examined the nature, evolution and context of corporate governance. And what ...