Corporate Governance: What Can We Learn from Public Governance?
Academy of Management Review, Forthcoming
30 Pages Posted: 5 Apr 2006
In view of recent corporate scandals, it is argued that corporate governance can learn from public governance. Institutions devised to control and discipline the behavior of executives in the political sphere can give new insights into how to improve the governance of firms. Proposals in four specific areas are discussed: manager compensation, the division of power within firms, rules of succession in top positions, and institutionalized competition in core areas of the corporation.
Keywords: corporate governance, public governance, agency theory, democratic institutions
JEL Classification: G34, H01, M20
Suggested Citation: Suggested Citation