CORPORATE GOVERNANCE INTERNAL CONTROL

May 29th, 2015
Studypool Tutor
Aberystwyth University
Price: $25 USD

Tutor description

As mentioned above, corporate governance mechanisms can help keep agency problems to a minimum. They are the processes and systems by which a country’s company laws and corporate governance codes are enforced (Adewale, 2013).

Word Count: 326
Showing Page: 1/2
Section 3- The cause of agency problems (corporate failures/corporate scandals)Agency problems arise when there is a lack of goal congruence between managers, directors and shareholders. According to Friedman (1979), the sole purpose of a business is to maximise the wealth of its shareholders. In an ideal world, directors and managers (agents) would obey by this and make decisions that would primarily benefit the shareholders (principals) of the company. However, agents are human and imperfect and will be incentivised to make decisions to increase their own wealth rather than that of the s

Review from student

Studypool Student
" <3 it, thanks for saving me time. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1823 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors