The Rise of Corporate Governance Brokers and How they Trade in Asymmetric Information

Universidad del CEMA Working Paper No. 341

25 Pages Posted: 28 Jun 2007

Date Written: February 2007

Abstract

This paper sets forth that governance brokerage can be regarded as a natural outgrowth of the actual practice of Corporate Governance. To lay the foundations of our subject, firstly we delve into the dual nature of any transaction. Then we move on to define what the expression "governance broker" means, underlining five professional arrangements from which governance intermediation can be achieved. Next, it is shown how trade splits up economic agents' information sets, giving rise to the brokerage of asymmetric information. Afterwards, we account for the ways a governance broker meets his goals in dyadic and polyadic relationships, bringing forward distinctive courses of action: clinical assistance, consultancy to foster growth and value, governance engineering, tutoring on global standards of governance, mediation in conflicts of interests, even international intermediation.

Keywords: governance broker, information sets, dyadic and polyadic relationships, brokerage of asymmetric information, corporate governance.

JEL Classification: G30, G34, G20

Suggested Citation

Apreda, Rodolfo, The Rise of Corporate Governance Brokers and How they Trade in Asymmetric Information (February 2007). Universidad del CEMA Working Paper No. 341, Available at SSRN: https://ssrn.com/abstract=996926 or http://dx.doi.org/10.2139/ssrn.996926

Rodolfo Apreda (Contact Author)

University of CEMA ( email )

Department of Finance Room 612
Buenos Aires, C1054AAP
Argentina
5411 6314 3000 (Phone)
5411 4803 0429 (Fax)

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