Lecture 3 Corporate Governance Flashcards
1
Q
What are the five theories of regulation?
A
Signalling theory
Public interest theory
Capture theory
Bushfire theory
Ideology theory
2
Q
What is the definition of corporate governance?
A
A structure which specifies the distribution of rights and responsibilities among the different participants in the organisation and which lays down the rules and procedures for decision-making’ - OECD or
The system by which companies are directed and controlled’
3
Q
List three characteristics of a public company
A
Separation between ownership and control
4
Q
A
5
Q
Define information asymmetry?
A
Managers have more access to information than shareholders do.
