Corporate governance Flashcards
1
Q
Corporate governance
A
Structure and system of control by which managers are held accountable by stakeholders within an organisation
2
Q
Governance chain
A
Roles and relationships of groups involved in the governance of the organisation
3
Q
Information asymmetry
A
1 party possesses more information than the other
4
Q
A
4
Q
Adverse selection
A
A party has information other doesnt about product quality, ex-ante (before contract signed)
5
Q
Moral hazard
A
a party in transaction increases risk taking as does not bear full cost of risk, ex-post (after contract signed)
