Agency theory, stakeholder theory, stewardship theory and transaction cost economics are the main influencing theories the development of corporate governance. Corporate governance can be drawn from a variety of disciplines and fields such as finance, economics, management, accounting, legal and regulatory rules, organizational behaviors, etc. She expresses concerns both in the internal aspects of the company (oversight of internal control and board structure). ) and external aspects (e.g. the relationship between labor policies, the role of multiple shareholders and other stakeholders) besides the protection of the rights of minority shareholders (Claessens and Yurtoglu; 2012; Mallin, 2013). Management will be responsible for designing, implementing and maintaining internal controls to prevent and detect any fraud that may occur. In today's business environment, good corporate governance will be effective in stopping more financial scandals and collapses in the future (Mallin, 2013) and protecting the reputation of managers and companies (Turnbull, 2000). . Additionally, it will also add value by improving business performance and improving other performances. Conversely, poor corporate governance can affect the functioning of a country's financial markets and the volume of cross-border financing (Claessens and Yurtoglu, 2012).2. AGENCY THEORY vs STAKEHOLDER THEORY2.1. Agency TheoryAgency theory explains the relationship between principals and agents (PA). Under the law of equity, agents (e.g. directors) have a legal duty to protect the interests of principals (e.g. shareholders). Jensen and Meckling (1976) identified the agency relationship as the case in which a contract binds the shareholders ("Princ...... middle of paper ...... exercise their stewardship responsibilities, which applied according to a “comply or explain” system). Stewardship theory emphasizes the beneficial consequences on shareholder returns of facilitative authority structures that unify command by assigning the roles of CEO and president to the same person. Stewardship theory does not focus on CEO motivation but rather on facilitating and empowering structures. merging the roles of chairman and CEO will improve efficiency and, therefore, produce higher returns for shareholders than separating the roles of chairman and CEO (Donaldson and Davis, 1991). CONCLUSIONSee traditional agency theory more. concern with the relationship between principal and agent, creating value and maximizing the wealth of the principal. Conversely, stakeholder theory consists of more humanity and implicit motivation..