Chapter 5: Corporate Governance for SMEs: Theory, Problem and Implications

Corporate governance is one of the most important topics available in the literature related to large-sized companies. However, the topic has rarely been discussed in the case of SMEs. However, the importance of the topic and mechanism has been in the limelight for more than one and a half decades. Although lack of knowledge especially regarding theoretical implications, literature and implications is still required to optimize the mechanism as well as its implications for SMEs. Therefore, this chapter has been formulated specifically concerning corporate governance mechanisms and their implications for SMEs. Hence, the scope of this study is much broader than those studies that focused on quantitative examination of variables of interest. Thus, the significance of this study has multiple folds as it is not only important for academicians and researchers but also for managers, entrepreneurs and policymakers.