Journal of Corporate Finance Vol. 66 2021
Corporate governance and corporate agility
Abstract
This paper suggests the topic of corporate agility as a fruitful area for corporate governance research. Corporate agility, which refers to a firms ability to adapt to changes in its environment, is likely to be a critical, yet understudied, determinant of firm performance and survival. This paper proposes an inverse relation between the centralization of decision-making in firms and agility. It also proposes that certain governance structures often viewed as increasing agency costs, such as insider-controlled boards and dual class stock, may actually increase agility and thereby improve firm performance and the chances of survival. The paper concludes with a discussion of specific ways in which agility might be incorporated into the corporate governance literature.
- DOI
- 10.1016/j.jcorpfin.2021.101929
- Volume
- 66
- Pages
- 101929
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref