A Proposal of a Conceptual Framework for Corporate Governance Research

Abstract

Objective: This paper aims at presenting and discussing a conceptual framework for corporate governance research. Method: The structure adopted for this framework derives from our analysis of some of the existing conceptual frameworks for corporate governance, which, despite their strengths, still fail to achieve a consensus and establish a shared structure. Originality/Relevance: It is our understanding, therefore, that the original framework proposed in this paper is more structured and comprehensive regarding the current literature than previous frameworks. Results: The proposed framework starts from the classic division between internal and external environment variables and then divides the internal environment into three dimensions: (i) structural (principal-principal relations); (ii) operational (principal-agent relations); and (iii) behavioral (interpersonal relations). All these categories contain extremely relevant discussions and enable researchers to view corporate governance as an integrated whole. Theoretical/Methodological contributions: Under an academic perspective, the proposed framework consolidates the knowledge produced within the field in a structured way and facilitates a harmonious and integrated understanding of its different facets. Social/management contributions: Professionals and regulators can use our framework to have a structured and integrated view of the existing corporate governance mechanisms, assisting their decisions in the elaboration of policies and recommendations.