What 15 the role of corporate governance as a sub-species of corporate law in the level of corporate risk taking?

Becker, Cleo Roxanne Zsa-zsa

What 15 the role of corporate governance as a sub-species of corporate law in the level of corporate risk taking?

Thesis / Dissertation

2010

Publisher

University of Cape Town

Department

Department of Commercial Law

Faculty

Faculty of Law

Abstract

Following the major corporate collapses of the past decade, companies around the world have been considering whether these collapses are a result of the failure of directors of corporations to curb their appe_tite for excessive risk taking. A director's duty to promote the success of the company places great pressure on directors to maximise profits in the short term. In addition to shareholder pressure directors are tempted with huge bonuses and remuneration packages for producing short term profits. This paper will examine how corporate governance as a sub-species of corporate Jaw can work effectively with regulation to prevent and discourage excessive risk taking behaviour.