Corporate Governance: Theoretical Foundations

Chapter Two discussed the main concepts, definitions, and existing literature on corporate governance and disclosure. The chapter analyzed the corporate governance models used in different countries and examined cultural and Islamic perspectives of corporate governance. The chapter also surveyed the different types of disclosure, cost and benefit considerations, the importance and motivation behind disclosure decisions, as well as the Islamic perspective on the importance of transparency and disclosure. The current chapter presents theories relevant to corporate governance and disclosure and develops an integrated theoretical framework based on the researcher’s understanding of how corporate governance affects the extent of disclosure.