Abstract: Agricultural sector create value by investing capital from investors to generate future cash flows at rates of return exceeding the cost of that capital. This enable agricultural sector to grow revenues and deploys more capital at attractive rates of return by ensuring process efficiency and production of quality products. Corporate governance enable agricultural sector to operate more efficiently, improve access to capital, mitigate risks especially financial risk and safeguard shareholders interest thus, enhancing accountability and transparency to investors. This paper reviewed existing empirical literature to find out value creation through corporate governance in the agricultural sector. The existing evidence revealed that corporate governance aspects such as board of directors, internal control, power balancing and compensation enhanced the performance of agricultural sector. The results further revealed that corporate governance systems focused on the creation of economic value, decisions consistent with the company objective to maximize share price. Translating the wealth-creation into tangible results has been a determining factor in the evolution of corporate governance systems and the implementation of decision-making criteria and resulting management procedures.
Keywords: Corporate Control, Corporate Governance, Value Creation, Agricultural Sector.
Title: VALUE CREATION THROUGH CORPORATE GOVERNANCE IN THE AGRICULTURAL SECTOR: A LITERATURE REVIEW
Author: Tabitha nasieku, Philip Ocharo Nemwel
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 10, Issue 2, October 2022 - March 2023
Page No: 28-41
Research Publish Journals
Website: www.researchpublish.com
Published Date: 05-October-2022
