26 Pages Posted: 21 Mar 2011 Last revised: 17 Nov 2011
Date Written: November 16, 2011
This entry for the Encyclopedia of Financial Globalization provides an introduction to corporate governance as the institutional framework that regulates the division and exercise of power in the corporation. Following an overview of basic concepts like power, agency, and the nature of the firm, this entry highlights the institutional quality of corporate governance as a socially-embedded system in a comparative context. The corporation’s internal bodies are then introduced (the CEO, board of directors, and general meeting), followed by a discussion of formal (legal) and informal (cultural) institutions.
Keywords: corporate governance, social institutions
JEL Classification: G34, K22, Z13
Suggested Citation: Suggested Citation
By Klaus Hopt