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The role, strenghts, limits and legitimacy of institutions of corporate governance

Publication at Faculty of Law |
2014

Abstract

Companies with diffused ownership often suffer from the fact that the stockholders' agenda - maximizing profits/shareholder value - can be at odds with agendas of their managers. In this setting, aligning both parties' interests becomes the goal of institutions of corporate governance.

The aim of these institutions, i.e. rules and mechanisms, is to tie managers to the interests of stockholders