International Research journal of Management Science and Technology

  ISSN 2250 - 1959 (online) ISSN 2348 - 9367 (Print) New DOI : 10.32804/IRJMST

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THE IMPACT OF BOARD COMPOSITION ON ACCOUNTING PROFITABILITY

    1 Author(s):  RAVI KUMAR

Vol -  6, Issue- 8 ,         Page(s) : 26 - 30  (2015 ) DOI : https://doi.org/10.32804/IRJMST

Abstract

Over the past two decades, particular attention in both the academic and professional literatures (Jensen, 1993; Hermalin & Weisbach 1991; Bhagat, & Black, 2002) has been directed towards the role of corporate governance in company administration. More so, following corporate scandals in most of the developed world, a number of recommendations into the administration of publicly quoted companies in different countries have focused attention on the importance of corporate governance in protecting the interests of shareholders. Jensen and Meckling (1976) acknowledged that the principal-agent theory which was also adopted in this study is generally considered as the starting point for any debate on the issue of corporate governance. A number of corporate governance mechanisms have been proposed to ameliorate the principal-agent problem between managers and their shareholders. These governance mechanisms as identified in agency theory include board size, board composition, CEO pay performance sensitivity, managerial ownership and share holder right

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