ABSTRACT
Our main objective is to evaluate the adoption and impact of various governance institutions on economic performance in relation to the United Kingdom. The analysis will focus mainly on the internal governance reforms. For example we shall look at management pay mechanisms, incentive systems, management dismissal, boards of directors, organisational design and the role of equity stakes. Derek Morris (Chapter 10) analyses fully the evidence relating to stock markets and the takeover mechanism as instruments for aligning managerial and shareholder interests
This chapter proceeds as follows. First, we specify the conditions under which corporate governance issues are relevant. Second, we detail some key governance mechanisms for controlling management. Third, we evaluate changes in boardroom governance in the wake of the critically acclaimed Cadbury Committee (1992) recommendations. Finally, we offer some concluding remarks.
