Governance mechanism: traditional × DAO
| Mechanism | Traditional | DAO |
|---|---|---|
| Transparency | Achieved through financial reporting and disclosure requirements (Bebchuk, Cohen, & Hirst, 2017) | Transparency is inherent due to the use of blockchain technology, which ensures transparent and immutable record-keeping (Böhme, Christin, Edelman, & Moore, 2015) |
| Accountability | Enforced through regulatory bodies, legal frameworks, and shareholder rights (Siew Yee, Sharoja Sapiei, & Abdullah, 2018) | Enforced through smart contracts (Chohan, 2017) |
| Board of directors | Composed of independent directors who oversee the organization (Hermalin & Weisbach, 2007) | Decision-making is decentralized, and shareholders participate directly through voting mechanisms or consensus protocols (Larimer, 2013) |
| Risk management | Internal/external auditor independence and definition of limits of authority for management (Mohd Noor, Rasli, Abdul Rashid, Mubarak, & Abas, 2022) | Relies on mechanisms such as auditing and community oversight to mitigate risks (Zetzsche, Buckley, Arner, & Föhr, 2019) |
| Ethics and corporate | Emphasizes behavior and corporate culture through codes of conduct and ethics policies (Crombie, 2008) | Participants are independent in their cooperation intentions (Virovets & Obushnyi, 2020) |
| Mechanism | Traditional | DAO |
|---|---|---|
| Transparency | Achieved through financial reporting and disclosure requirements ( | Transparency is inherent due to the use of blockchain technology, which ensures transparent and immutable record-keeping ( |
| Accountability | Enforced through regulatory bodies, legal frameworks, and shareholder rights ( | Enforced through smart contracts ( |
| Board of directors | Composed of independent directors who oversee the organization ( | Decision-making is decentralized, and shareholders participate directly through voting mechanisms or consensus protocols ( |
| Risk management | Internal/external auditor independence and definition of limits of authority for management ( | Relies on mechanisms such as auditing and community oversight to mitigate risks ( |
| Ethics and corporate | Emphasizes behavior and corporate culture through codes of conduct and ethics policies ( | Participants are independent in their cooperation intentions ( |
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