Corporate Governance and the Global Financial Crisis: Some Recommendations

• In Event: History and Public Interest

Abstract

The need for stricter corporate governance mechanisms, to restore the public’s trust in U.S. financial markets, increased after the latest round of corporate fraud cases. Proponents of stricter governance argue that governance mechanisms failed to curb the 2007-2008 global financial crisis. The reason, they assert, is that corporate governance is mostly reactive. This study explores the role of corporate governance and sets forth corporate governance improvement recommendations. These recommendations address the need for having proactive corporate governance, using meta analysis to reconcile conflicting research findings, employing theoretical underpinnings that go beyond agency theory, and developing an agenda for corporate governance convergence. This study also develops a framework to expand the role of corporate governance.

Authors

• Dina F El Mahdy, Morgan State University

• Cynthia Tollerson, Morgan State University

• Bilal Makkawi, Morgan State University