Corporate governance and power

Won-Yong Oh

Chapter 8 in Market Capitalism and Social Responsibility, 2026, pp 127-142 from Edward Elgar Publishing

Abstract: Corporate governance is more than a set of organizational controls—it is the institutional architecture through which corporate power is distributed, constrained, and legitimized. Modern corporations operate at a scale that shapes markets, communities, and public life, making governance a central mechanism for defining whose interests corporations serve and how managerial authority is held accountable. This chapter reframes corporate governance around three core questions: (1) why governance is necessary, rooted in the separation of ownership and control and the resulting agency problem; (2) how governance operates, through mechanisms such as boards of directors, shareholder activism, executive compensation, and the market for corporate control; and (3) how governance extends beyond monitoring, incorporating resource dependence, stewardship, and broader concerns of legitimacy. By integrating these perspectives, the chapter presents corporate governance as a dynamic arena where efficiency, accountability, and social legitimacy intersect.

Keywords: Corporate Governance; Ownership and Control; Agency Problem; Board of Directors; Shareholder Activism; Executive Compensation (search for similar items in EconPapers)
Date: 2026
ISBN: 9781049409207
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