- Subject index
‘This collection of essays by a number of scholars from India and Europe addresses economic, political and social issues of great contemporary significance. The most attractive feature of the volume is the comparative and inter-disciplinary approach which gives it its distinctive orientation. Munshi and Abraham have held diverse but important themes together in an exemplary manner’
- Andre Beteille, Chairman, Centre for Studies in Social Sciences, Kolkata
‘This is an outstanding book on an issue easier talked about than acted upon. The editors have brought together in this rich volume a wide variety of essays which focus on India and Europe and clarify that it is necessary to contextualise good governance. The comparative perspective has the additional advantage of extending the analysis beyond the realm of the ...
Chapter 19: Issues in Corporate Governance in India1
Issues in Corporate Governance in India1
The fundamental question of corporate governance is how to assure financiers that they get a return on their financial investment (Shleifer and Vishny 1996). Berle and Means observed that by 1932 ‘entrepreneurial capitalism’ had given way to a system of ‘financial capitalism’ where owners and professional managers who ran the corporations were not the same. According to them, separation of ownership and management also leads to a separation of ownership and control (Berle and Means 1932). This gives rise to the agency problem because the ‘utility’ of professional managers seldom converge with the ‘utility’ of owners. The agency problem perspective or the principal-agent paradigm fits into the view that modern corporations are run by ...