墨尔本论文代写 代理理论

2016-12-16 07:15






墨尔本论文代写 代理理论

Today, agency theory plays a dominated role in researching of corporate governance, however, there are some other theories that can be used in corporate governance and some of them have different advantages that may improve organizational performance. This essay is going to explain four main theories including agency theory, stakeholder theory, transaction cost theory and stewardship theory and will critically evaluate and analyze their practices in corporate governance.
Agency theory
In the sentence, the author wrote that agency theory is superior to and have right to control the corporate governance research, and that governance literature is a combination of a wide range of various theoretical opinions. Those theory support to the agency theory but not replacements for the agency theory, as the author means. Also, the author says that corporate governance is basic to be recognized by multiple theories methodology, so that the organizational functioning can be improved reasonably with those mechanisms and structures (Daily, Dalton and Cannella, 2003).
We do not totally agree with the sentence because in our opinion a multi theoretic approach is required for corporate governance to reasonably enhance functions of the organization, because there are agency theory, origins of the separation problem, stakeholder and stewardship theories, and the relevance of modern corporation theory that can explain corporate governance.
The agency theory includes the problems of directors who control the company while shareholder own the company (Cuesta, 2009). It also analyzes relationships between agents and principals. At the same time, corporate governance is usually used to change rules under which agent operates the interests of principals, which agency theory can explain and analyses (Eisenhardt, 1989). Both the agency theory and corporate governance solve the problem of the relationship. Thus it is seems to be agreed with that ‘agency theory dominates corporate governance research, part of the governance literature stem from a wider range of theoretical perspectives’ written by Daily. For example, we believe that the board of directors of an organization can be the most central power of the internal governance mechanism sometimes, which is a similar point to ‘The board of directors is perhaps the most central internal governance mechanism’ (Anderson, 2010). And agency theory is appropriate for focusing on the role of directors.