Corporate Governance: A Literature Review with a Focus on the Technology Firms

Abstract

Corporate governance is often regarded as a main driver of firm performance. However, previous studies often discover contradicting findings about the causal effect of corporate governance mechanisms on firm performance. In this paper, corporate governance literature will be reviewed with a focus on technology industry. Our paper shows that contemporary literature may overlook the industry and institutional context of technology firms. We propose that a fine-grained empirical setting is important in future research. In particular, the countervailing effect of high information asymmetries in high ownership concentration context may require more attention. Lastly, future studies of technology industries in emerging economies can be focused on the potential interaction effect between corporate governance mechanisms and firm investment.