Selected Leadership Styles and Corporate Governance: Literature Review on Relationship Perspective

Abstract

This article provides comprehensive literature analyses of the relationship between selected contemporary/modern leadership styles and Corporate Governance (CG). Do leaders apply appropriate CG as they exercise their leadership styles? Therefore, the paper underscores that a good leadership style embraces good CG. Selected leadership styles such as; transformational, transactional, servant, and authentic leadership, have an impact on CG on aspects such as; stakeholder rights, composition of the board of directors, shareholder’s behavior, management practices, organizational policies, and regulations. The Postulated theories of CG such as; agency theory, stewardship theory, stakeholder theory, and resource dependency theory are explored. The literature findings signify the efficacy and predominance of effective leadership styles in shaping good CG practices and the need for appropriate mechanisms that support and enhance effective leadership.