A Discussion on Corporate Governance and its Theories

The aim of this project is to give a clear picture on the corporate governance mechanisms and its theories. Corporate governance refers to a set of rules and regulations which are complied with by corporations. Scholars defined governance is a term that refers to the way in which an enterprise or body of people is governed and to the rules and regulations for governing by people in authority and power. Principles of corporate governance are noted as directors, directors' remuneration, shareholders, audit and accountability. However, CEO duality, audit committee, board independence and board composition are the most researched issues in academic and business globe. Based on this concept this project intended to depict the above mentioned issues. In addition, there are number theories related to corporate governance and its mechanisms, though it is claimed that agency theory is the most significant theory in the world of corporate governance. Whereas other proponents of corporate governance claim that agency theory is unable to cover corporate governance. In this vein, this project intends to depict the related theories of corporate governance and its mechanisms. Mechanisms covered h