A Literature Review of Corporate Governance

Corporate Governance is a broad term defines the methods, structure and the processes of a company in which the business and affairs of the company managed and directed. Corporate governance also enhances the long term shareholder value by the process of accountability of managers and by enhances the firm's performance. It also eliminate the conflict of ownership and control by separately defines the interest of shareholders and managers. 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.