Corporate Governance Theories: A Systematic Review

The purpose of this study is to check, does agency and stewardship theories are complimentary to each other which will help the researchers to understand the similarity and difference in beliefs and understandings of both the theories. These theories are applied in different environments and circumstances based on the location where company is operating and the governance structure of the corporate. The relationship between principle and agent plays a important role to increase efficiency and productivity of the organisation. Both principle and agent has its own goals but when it differs there are chances of conflict in the organisation. Agency theory supports the separate role of the CEO and chairman of the board, because when CEOs are powerful the interest of the shareholders are jeopardizeThe purpose of this study is to check, does agency and stewardship theories are complimentary to each other which will help the researchers to understand the similarity and difference in beliefs and understandings of both the theories. These theories are applied in different environments and circumstances based on the location where company is operating and the governance structure of the corporate. The relationship between principle and agent plays important role to increase efficiency and productivity of the organisation. Both principle and agent has its own goals but when it differs there are chances of conflict in the organisation. Agency theory supports the separate role of the CEO and chairman of the board, because when CEOs are powerful the interest of the shareholders are jeopardize. Stakeholder theory facilitates the idea of CEO and Chairman of the board being a one. Both stewardship and agency theory cannot be applied together because of difference in their basic understanding. Stakeholder theory facilitates the idea of CEO and Chairman of the board being a one. Both stewardship and agency theory cannot be applied together because of difference in their basic understanding