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Corporate governance—A multi-theoretical approach to recognizing the wider influencing forces impacting on organizations

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  • Christopher, Joe

Abstract

It has been argued by researchers that agency theory has limitations as the underpinning theory for governance given its inability to recognize the wider environmental influencing forces impacting on organizations. This paper provides a case for incorporating a number of management-based theories to augment agency theory in recognizing these wider environmental influencing forces and the consequent extended governance paradigm it creates. Through a theory building approach that reviews and critically analyses the extant literature, a case is built to integrate four existing theories that complement each other to recognize these wider influencing forces. The paper argues that the proposed approach will narrow the theoretical practical gap in governance and will consequently have policy implications on governance guidelines. Further research is suggested to validate the approach with a wide range of real life organizational settings.

Suggested Citation

  • Christopher, Joe, 2010. "Corporate governance—A multi-theoretical approach to recognizing the wider influencing forces impacting on organizations," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(8), pages 683-695.
    • Handle: RePEc:eee:crpeac:v:21:y:2010:i:8:p:683-695
    DOI: 10.1016/j.cpa.2010.05.002
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    Cited by:

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    2. Elisa Baraibar-Diez & María D Odriozola & José Luis Fernández Sánchez, 2016. "Transparency through European corporate governance codes," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 13(3), pages 244-261, August.
    3. Yusuf, Fatima & Yousaf, Amna & Saeed, Abubakr, 2018. "Rethinking agency theory in developing countries: A case study of Pakistan," Accounting forum, Elsevier, vol. 42(4), pages 281-292.
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    5. Nikbakht, Ehsan & Sarkar, Sayan & Spieler, Andrew C., 2017. "External monitoring of private firms: A cross-country empirical analysis," Global Finance Journal, Elsevier, vol. 32(C), pages 113-127.
    6. Naeem Tabassum & Satwinder Singh, 2020. "Corporate Governance and Organisational Performance," Springer Books, Springer, number 978-3-030-48527-6, December.
    7. Barone, Elisabetta & Ranamagar, Nathan & Solomon, Jill F., 2013. "A Habermasian model of stakeholder (non)engagement and corporate (ir)responsibility reporting," Accounting forum, Elsevier, vol. 37(3), pages 163-181.
    8. Achard, Paola Olimpia & Di Berardino, Antonina, 2018. "Public Private Partnerships: Strategic Assets and Managerial Models," 29th European Regional ITS Conference, Trento 2018 184925, International Telecommunications Society (ITS).
    9. Mihret, Dessalegn Getie, 2014. "How can we explain internal auditing? The inadequacy of agency theory and a labor process alternative," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(8), pages 771-782.
    10. Beattie, Vivien, 2014. "Accounting narratives and the narrative turn in accounting research: Issues, theory, methodology, methods and a research framework," The British Accounting Review, Elsevier, vol. 46(2), pages 111-134.
    11. Joe Christopher & Philomena Leung & Shane Leong, 2017. "Can Employees Be Used to Overcome Independent Audit Limitations?," Australian Accounting Review, CPA Australia, vol. 27(4), pages 442-456, December.
    12. Ionel Bostan & Alic Bîrcă & Aliona Bîrcă & Christiana Brigitte Sandu, 2022. "Global Top E-Commerce Companies: Transparency Analysis Based on Annual Reports," JRFM, MDPI, vol. 15(7), pages 1-16, July.
    13. Joe Christopher & Gerrit Sarens, 2015. "Risk Management: Its Adoption in Australian Public Universities within an Environment of Change Management – A Management Perspective," Australian Accounting Review, CPA Australia, vol. 25(1), pages 2-12, March.
    14. Zhang, Liang & Zhang, Zhe & Jia, Ming & Ren, Yeyao, 2020. "A tiger with wings: CEO–board surname ties and agency costs," Journal of Business Research, Elsevier, vol. 118(C), pages 271-285.
    15. Nor Zarina Abu & DjasrizaJasin & Shaikh Hamzah Abdul Razak & Kamaruddin Sharif, 2014. "Corporate Governance and Maqasid Shariah: An Empirical Study on Management Practices of Takaful Operators in Malaysia," International Journal of Financial Economics, Research Academy of Social Sciences, vol. 3(1), pages 41-56.
    16. Md. Ali Rasel & Sandar Win, 2020. "Microfinance governance: a systematic review and future research directions," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(7), pages 1811-1847, April.
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    18. María Consuelo Pucheta-Martínez & Inmaculada Bel-Oms & Gustau Olcina-Sempere, 2018. "Female Institutional Directors on Boards and Firm Value," Journal of Business Ethics, Springer, vol. 152(2), pages 343-363, October.

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