CORPORATE GOVERNANCE AND FIRM PERFORMANCE: EVIDENCE FROM U.S. OIL & GAS INDUSTRY

摘要

Corporate governance is not a new topic in finance. In general terms, corporate governance refers to the rules and regulations that are used to monitor, control and manage businesses. Shleifer and Vishny (1997), in an extensive study on the theory of corporate governance, view the separation of ownership and control from a straightforward agency perspective. According to their study "corporate governance deals with the ways in which suppliers of finance to corporations assure themselves of getting returns of their investment." By following specific rules, terms, and policies, agents within an organization govern the working of the business which in turn ensures an adequate return on invested capital.