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Governance and Moral Risk: New Approaches

Author

Listed:
  • OAlia Gabriela DUTA

    (University of Craiova)

  • Victor Mihăiță DUTA

    (Court of Auditors of Romania)

Abstract

In agent theory, managers occupy a central place. The central position of managers contributed to the development of management sciences (Charreaux, 2000). Initially, agent theory emerged as a financial theory, but it quickly expanded its influence beyond the financial field (Jensen and Meckling, 1976). The theory of the agent is at the origin of new theoretical fields, for example “governance†, especially “enterprise governance†. As far as governance theory is concerned, it has allowed the renewal or extension of analyzes on economic systems (Charreaux, 2004/2005). In this context, it can be mentioned that “the most significant contributions of the TPA are found in the fields of enterprise governance, management control and human resource management†(Charreaux, 2004/2005, p. 16). Gaudin (2002, p. 10) considers that “the term governance is a way of seeing, a framework of analysis and a language to define and solve multiple problems. Moreover, governance is a clinical examination apparatus to increase performance and a mental tool for the organizational and architectural design of any economic and social entity.â€

Suggested Citation

  • OAlia Gabriela DUTA & Victor Mihăiță DUTA, 2018. "Governance and Moral Risk: New Approaches," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(20), pages 85-96, November.
    • Handle: RePEc:aio:fpvfcf:v:1:y:2018:i:20:p:85-96
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    egovernance; good governance; moral hazard; agent theory;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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