Journal of Business & Economic Policy

Corporate Governance as it Relates to Private Company Boards – A History of Transparency, Balance, and Trust
Terry A. Ruhl, P.E; F. ASCE, DrBA

Abstract
The extant literature illustrates that board governance originated largely through leadership reputation, legal measures, and large ownership concentration, migrating to identifying governance provisions which lead to enterprise value accretion. As a result, the scholarly research is predominantly positive and conclusive on the need for a robust, independent board of directors to create enhanced firm value. Moreover, a movement to providing transparency to both internal (employees) and external (industry analysts) parties has been found to be just as important, if not more so, as firms try to balance the needs of fiscal and corporate social responsibility. In fact, those firms operating through the flexibility of private ownership, or other respected elites,have an opportunity to set the stage for future corporate governance actions and policy. Regardless of the ownership structure, company governance is coming back to reputational-based and human condition-oriented means by employing the essential principles of transparency, balance, and trust.

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