Theoretical Perspectives of Corporate Governance


Ghulam Abid
Binish Khan
Zeeshan Rafiq
Alia Ahmed


Corporate Governance is relatively new area and its development has been affected by different theories from

different domain, including law, economics, finance and management. This article gives a theoretical overview

within the disciplines of corporate governance. This research paper provides an overview of main theory i.e.,

agency theory as well as other theories like stewardship theory, stakeholder theory, resource dependency theory

and transaction cost economics theory that influences the development of corporate governance. Researchers

also reveal the differences among these theories, spanning over different disciplines with diverge scope. Some

theories are most appropriate are relevant for some context as compared to the others. The study calls the need

for the development of a general theory of corporate governance with conjunction of legal system (common law

or civil law) and considering other actors. It gives new mode of thinking and new direction of research in

analysing corporate governance.


How to Cite
Ghulam Abid, Binish Khan, Zeeshan Rafiq, & Alia Ahmed. (2021). Theoretical Perspectives of Corporate Governance. Bulletin of Business and Economics (BBE), 3(4), 166-175. Retrieved from