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Corporate Governance And High Performance

What high performance means through a Corporate Governance theoretical perspective

Introduction
Business evolution brings many challenges for scholars whom focus their studies on trying to embrace and explain the meaning of that process and predict its consequences. The reason for this focus is that evolution carries out important and significant changes.

However the challenge is huge when the changes arise not only through a natural evolution but also through a radical revolution. The difference between the origins of the changes should be assessed in order to understand the real meaning of those changes.

In this essay we are going to evaluate different studies and perspectives of Corporate Governance and explain how those studies promote, evaluate and demonstrate the performance improvement in organizations when the new trends in Corporate Governance are applied. At the same time we are going to express our opinions about the new approaches of Corporate Governance allocating those studies into a specific social-historic category based on the level of changes that they promote.

Corporate Governance: Firsts and last changes?
The changes of economical institutions and their elements constantly reveal new dimensions of interests, behaviors and power. Within the market changes in organizational structures started many years ago. The family and small organizations have evolved into corporate organizations in which the complexity, the dimension and the new structure are the most important characteristics.

The new structure supposed a divorce between ownership and control. The consequences of this separation are explained through the Agency theory.

Agency theory emerged from the seminal papers of Alchian and Demsetz and Jensen and Meckling (1976) explaining the firm as a nexus of contracts among individual factors of production.

Specifically, agency theory is directed at the ubiquitous agency relationship, in which one party (the principal)...