AN OVERVIEW OF CORPORATE GOVERNANCE

Abstract

Corporate Governance is a general concept describes the practices, arrangement and the procedures of a corporation under which the business and affairs of the company handled and directed. Corporate governance further increases the long term shareholder capital through the mechanism of transparency of management and by enhances the firm’s efficiency. It also removes the conflict of property and power by identifying the owners' and managers' rights independently. This paper reviews the extensive literature of corporate governance practices to find out the effectiveness of corporate governance mechanism in the companies and institutions. The paper also focuses on to reduce the principal-agent problem due to the effective corporate governance mechanism in the organizations.