Agency Problem and the Role of Corporate Governance Revisited

This paper is an attempt to identify various agency relationships that exist in the economic and business life and the related problems that often arise due to such relationships. It also identifies the role of various corporate governance mechanisms in mitigating the agency problems. Though no individual corporate governance mechanism is a perfect one, a careful selection of individual and/or combination of these is likely to serve a better purpose when factors like level of capital market development, legal system of a country are simultaneously considered.