What is CORPORATE GOVERNANCE?

✪✪✪✪✪
http://www.theaudiopedia.com
✪✪✪✪✪

What is CORPORATE GOVERNANCE? What does CORPORATE GOVERNANCE mean? CORPORATE GOVERNANCE meaning - CORPORATE GOVERNANCE definition - CORPORATE GOVERNANCE explanation. What is the meaning of CORPORATE GOVERNANCE? What is the definition of CORPORATE GOVERNANCE? What does CORPORATE GOVERNANCE stand for? What is CORPORATE GOVERNANCE meaning? What is CORPORATE GOVERNANCE definition?**

Corporate governance are mechanisms, processes and relations by which corporations are controlled and operated ("governed").

"Corporate governance" may be defined, described or delineated in diverse ways, depending on the writer's purpose. Writers focused on a disciplinary interest or context (such as accounting, finance, law, or management) often adopt narrow definitions that appear purpose-specific. Writers concerned with regulatory policy in relation to corporate governance practices often use broader structural descriptions. A broad (meta) definition that encompasses many adopted definitions is "Corporate governance describes the processes, structures, and mechanisms that influence the control and direction of corporations."

This meta definition accommodates both the narrow definitions used in specific contexts and the broader descriptions that are often presented as authoritative. The latter include: the structural definition from the Cadbury Report, which identifies corporate governance as "the system by which companies are directed and controlled" (Cadbury 1992, p. 15); and the relational-structural view adopted by the Organisation for Economic Cooperation and Development (OECD) of "Corporate governance involves a set of relationships between a company's management, board, shareholders and stakeholders. Corporate governance also provides the structure and systems through which the company is directed and its objectives are set, and the means of attaining those objectives and monitoring performance are determined" (OECD 2023, p. 6).

Examples of narrower definitions in particular contexts include:

"a system of law and sound approaches by which corporations are directed and controlled focusing on the internal and external corporate structures with the intention of monitoring the actions of management and directors and thereby, mitigating agency risks which may stem from the misdeeds of corporate officers."
"the set of conditions that shapes the ex post bargaining over the quasi-rents generated by a firm."
The firm itself is modelled as a governance structure acting through the mechanisms of contract. Here corporate governance may include its relation to corporate finance.