Theories and Models of Corporate Governance - Differentiation
From the perspective of Corporate Governance, here is the comparison among theories of agent, stewardship, stakeholder and sociological. After that we also differentiate Models of Anglo-American, Japanese and Indian. Differentiation of the Theories of Corporate Governance Agent Theory In this theory there is relationship of principal and agent and owners or principal work indirectly through agents, so, there is agency loss. The role of manager acts as agents and to control and monitor the activities. As principals work through agents so there is agent loss, because the personal interest of principal and agents differ and the return of owners falls. Owners try to avoid risk to reduce loss. Stewardship Theory In this theory there is no relationship of principal and agent but principal work directly and without the help of agents. The role of the manager is to facilitate and empower the employees. Th...