CORPORATE GOVERNANCE MECHANISMS INSIDE THE FIRM233
attention they deserve from refocused and energized corporate boards of direc-
tors. As shown in Table 10.2, some of the best corporate boards have clearly
gotten the message; some of the worst corporate boards still have much to learn.
II.CORPORATE GOVERNANCE MECHANISMS
INSIDE THE FIRM
Corporate control mechanisms inside the firm are useful means for helping ame-
liorate the potential divergence of interests between managers and stockholders.
Organization design, including the degree of vertical integration and the horizon-
tal scope of the corporation, is an example of an essential corporate governance ...
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