Agency theory, corporate governance and corruption: an integrative literature review approach

Abstract

The aim of this study is to revisit the concept of the separation between ownership and control through reviewing studies on agency theory, governance, and corruption. This study applies integrative literature review as research method where the arguments and counterarguments are derived from existing studies. Relevant literature is identified and read in detail using the selected review strategy. The principal goal of the study is to develop an inventory surrounding the key themes of governance, corruption, and agency theory. None of the existing studies addresses the interrelationships between agency theory, corruption, and corporate governance. This study, thus, fills the gap exploring the theoretical and empirical evidence studying the bibliometric sources. The study finds evidence in support of changing ownership pattern from diffuse to concentrated and argues that the change has caused corruption due to deepening agency crisis. The study also finds that the extant literature focuses on applied areas which calls for further studies on core areas. Incorporating the concept espoused by Berle and Means, this study brings practical implication of agency theory in real life and extends the applicability of the concept.