Research Proposal

Research Proposal

1. Introduction

“Corporations create jobs, generate tax income, produce a wide array of goods and services at reasonable prices, and increasingly manage our savings and secure our retirement income. Amid growing reliance worldwide on the private sector, the issue of corporate governance has similarly risen in prominence.” (OECD 1999: 7)

Among the literature, there are conflict views in defining corporate governance (CG). According to OECD (1999:7), “Corporate governance relates to the internal means by which corporations are operated and controlled. While governments play a central role in shaping the legal, institutional and regulatory climate within which individual corporate governance systems are developed, the main responsibility lies with the private sector.” According to Monks and Minnow (2008: 3), CG is “Corporate governance is now and forever will be properly understood as an element of risk – risk for investors, whose interest may not be protected by ineffectual or corrupt managers and directors, and risk for employees, communities, lenders, suppliers and customers as well.” Jonathan Charkham (1995: 1) states CG much wider as “the system by which companies are directed and controlled”. Similarly, Keasey and Wright (1993; cited in Keasey, Thompson and Wright 19956: 2) describe the CG as the “structures, process, cultures and systems that engender the successful operation of the organizations”. Walsh and Seward (1990) raise the classifications between internal and external mechanisms of corporate governance.

In this proposal, several points will be mentioned. Firstly, the question, aim, objective, theory, and importance of the research will be addressed. Secondly, some evidence and discussion in literature will be raised referring to this field. Additionally, a conclusion will be drawn. Fourthly, there is a time plan for the research, and finally, a list of references and bibliography will be attached.

2. Main body...