Corporate Governance
Corporate Governance Theory
Agency Theory
Stewardship Theory
Definition
Complete contracts
Moral Hazard
Asymmetric information
Agency Problem
Agency Cost
monitoring expenses
bonding cost
residual loss
People behave different
Theoretical Choices
Compare with ST
Model of man behaviour
Economic man
Self serving
Pyschological Mechanisms
Lower economic needs
Extrinsic
Other managers
Institutional
Situational Mechanisms
Control oriented
Control mechanisms
Short term
Cost control
Individualism
High power distance
manager do not motivated by individual goals, but rather are stewards whose motives are aligned with the objectives of their principal
Compare to AT
Model of man behavior
Self actualizing man
Collective serving
Pyschological mechanism
High oder needs
Instrinsic
Principal
Personal
Situational mechanism
Involvement oriented
Trust
Long term
Performance enhancement
Collectivism
Low power distance
Social Emotional Wealth (FIBER)
I: Identification of family members with the firm
B: Binding social ties
E: Emotional attachment of family members
R: Renewal of family bonds to the firm through dynastic
F: Family control and influence
Conflicts of interests
The Providers of finance vs. senior management
Perks
empire building
the different types of shareholders
minority and majority shareholders
occur apporpriation through tunneling
Shareholders und Stakeholders
Shareholders
Credits, Goverment, General Public, Employess, Customer, Suppliers and so on...
Behavioural biases
Concept of bounded rationality
Sources of biases in human behaviour
Heuristic simplications (sự đơn giản hóa dựa trên kinh nghiẹm
Emotions
Social interactions
Self - deception (tự lừa dối bản thân)
Gender & Age
Relexive loyalty