Corporate Governance: An essential mechanism to curb malpractices by Organizations
Published By: Policy Analysis Unit (PAU) - Bangladesh Bank | Published Date: July, 01 , 2007The corporate governance mechanisms are market, institution and legal settings that protect outside investors from opportunistic behavior of managers or controlling shareholders. In the absence of such protection, asymmetries of information and difficulties of monitoring faced by outside investors enable managers to misallocate corporate resources, often at the expense of the long-term performance. Therefore, efficient corporate governance provides better corporate performance, while poor corporate governance leads to bad corporate performance.
Author(s): M. Bakhtear Uddin Talukdar | Posted on: Feb 15, 2016 | Views() | Download (226)