The purpose of this book is to provide a comprehensive view of the shareholder-manager relationship and to examine the current state of governance mechanisms in mitigating the principal-agent conflict. Although this companion reviews some early work on corporate governance, it primarily focuses on research conducted since the 1976 publication of Jensen and Mecklings treatise on the theory of the firm (Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure, Journal of Financial Economics), in which they apply agency theory to the modern corporation and formally model the agency costs of outside equity. The editors will enlist several dozen noted scholars to provide a synthesis of the current state of corporate governance and to give suggestions or predictions about its future direction.
Book Details:
- Author: H. Kent Baker
- ISBN: 9781118258439
- Year Published: 2010
- Pages: 676
- BISAC: BUS027000, BUSINESS & ECONOMICS/Finance
About the Book and Topic:
The purpose of this book is to provide a comprehensive view of the shareholder-manager relationship and to examine the current state of governance mechanisms in mitigating the principal-agent conflict. Although this companion reviews some early work on corporate governance, it primarily focuses on research conducted since the 1976 publication of Jensen and Mecklings treatise on the theory of the firm (Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure, Journal of Financial Economics), in which they apply agency theory to the modern corporation and formally model the agency costs of outside equity. The editors will enlist several dozen noted scholars to provide a synthesis of the current state of corporate governance and to give suggestions or predictions about its future direction.
The importance of corporate governance became dramatically clear at the beginning of the 21st century as a series of corporate meltdowns from managerial fraud, misconduct, and negligence caused a massive loss of shareholder wealth. The firms owners (shareholders) asked who, if anybody, is protecting and promoting the value of their investment. Jensen and Meckling, in their seminal work from 1976 entitled Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure, can perhaps be credited with bringing governance issues to the forefront in the field of finance. At the heart of corporate governance is the idea that since shareholders are largely absentee owners and managers control firm operating decisions, managers can place their interests before those of the shareholders, which generates a principal-agent conflict.
PART OF THE ROBERT W. KOLB SERIES IN FINANCE. As part of the Kolb series, this essential collection of chapters written by expert academics (Harvard, Yale) and practitioners (INSEAD) presents readers with comprehensive coverage of corporate governance. It is also a necessary tool for managers looking to both maximize shareholder value and meet executive targets. ESSENTIAL PERSPECTIVES ON ONE OF WALL STREET’S MOST IMPORTANT TOPICS, CORPORATE GOVERNANCE. Volume editors Kent Baker and Ronald Anderson have brought together an esteemed list of contributors to bring readers the most comprehensive theory and cutting-edge research for industry participants to put into practice. Topics range from internal governance (Boards of Directors; Compensation, Ownership, and Turnover) to external governance (Non-executive Shareholders; Non-equity Stakeholders; Proxy Contests and Markets; and Accounting, Legal, and Regulator Intervention), and this volume also includes Questions & Answers particular to each chapter for readers to use to test themselves along the way.
About the Author
H. Kent Baker (Washington, DC) is a University Professor of Finance at the Kogod School of Business at American University. He served as the Chair of the Department of Finance and Real Estate for eleven years and headed the Finance Center of Excellence for eight years. Before joining the faculty at American University in 1975, he held both faculty and administrative positions at Georgetown University and University of Maryland. He has served on several boards of directors and advisory councils including the Eastern Finance Association and Southern Finance Association. He has been the Dean of the Executive Management Institute of the Uniform and Textile Service Association since 1981. Ronald Anderson (Washington, DC) is an Associate Professor of Finance and Real Estate and the Gary Cohn Endowed Research Professor at the Kogod School of Business at American University. He currently serves as the Chair of the Department of Finance and Real Estate. Before earning his Ph.D., he worked as an engineer and corporate executive for Schlumberger Limited for more than 11-years; holding both domestic and international posts. International positions included expatriate postings as country manager in South Africa and Bolivia, and corporate level postings in France, Germany, and the Netherlands.