A Conceptual Action Model of Reputation Mechanism and Corporate Governance

Scholars and enterprisers pay attention to the perfect and improve corporate governancedasias level. In contrast to the law and regulation, reputation mechanism can efficiently affect corporate governancepsilas interior and exterior bodies and alleviate problems of corporate governance. This paper analyzes the reputation mechanism. First corporate governance problem is analyzed in this paper. Second this paper points out the shortcoming of the measure of corporate governance problem. Based on the theory of reputation mechanism this paper builds an action power model of reputation mechanism and corporate governance. Finally the suggestion is put forward to improving corporate governance from the view of reputation.