Corporate governance and mechanisms of control in General Electric

Abstract

Corporate governance is a main tool in company management. System of management acting today has developed significantly during the last century. After a long time, a lot of changes reformed and improved traditional methods of control. In this research, important aspect as corporate governance and mechanisms of control were considered in General Electric company. The reason of conducting this research is revealing factors, which influence to financial and operational performances in General Electric. Management in all companies goes through Agency theory and Fisher separation theorem. Those theories mentioned were used to determine interrelationships between subjects of management and help to understand connection with organizational structure and financial data. As a research method, regression analysis was used. Understanding features of management allows find out weakest and strong sides of company by using variables which affecting to management performance. Outcomes of this research, obtained by using regression analysis, is intended to be used in creating new strategic plans, taking into account possible negative factors have been revealed.