Corporate Governance Development: New or Old Concept

Abstract

Previous studies that dealt with Corporate Governance have concentrated on its importance and the necessity of its application. This paper has focused on the  history of corporate governance and its roots in the time that the audience and the majority of researchers believed that its existence and principles came by the rules of Sarbanes–Oxley Act and legislation in the United States of 2002. The experience of the auther over the years  in accounting and management and particularly in the discipline of corporate governance, in addition to depth literature review, all have been used to develop this research. It is concluded that despite common beliefs and debate for the period of corporate governance emergence in 2000s, corporate governance’s begining arose before a hundred of years. This study is important for investors and organizations as well to be aware of the necessity to apply corporate governance principles and mechanisms in all contries, being an ancient and precise system that has deep roots. This paper therefore provides useful information and clear picture to the researchers and practitioners about the reality of corporate governance’ history and roots.

Keywords: Corporate governance, Agency theory, History