209-230

• Chalevas, C., G.

It has been argued that the managers of modern firms, due to the separation between management and ownership, are more inclined to promote their goals even at the expense of shareholders interests. This constitutes the agency problem that pertains in large modern corporations. The findings of empirical research seem to support this hypothesis. Various corporate governance mechanisms have been introduced in many firms in order to deal with the agency problem that exists in these firms. The purpose of this paper is to provide a review of the historical development of corporate governance mechanisms.

• Economics and Business

• Economics

Corporate governance mechanisms, agency theory, agency problem

JEL classification: G30, O16