The Role of Corporate Governance in fdi decisions: Evidence from Taiwan

Management and Governance Thought

Although management and governance terms are definitely different, we aware of the terms management and governance used together. Meaning of management is more local than governance. It is possible to seen all steps of an organization. Governance is related top management pursued policies. It protects the relations among the parties Board of Directors, stakeholders, uppermost management of an organization. Firstly, we mention management here and will be continued with governance.

Turkey economic instability and pursued economic policies prevented to development of both management and governance thought. Till early 2000. There have been independent variables causes the undeveloped management such as:

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  capital inadequacy,
  
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  closed economy
  
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  government intervention,
  
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  protectionism of private entrepreneur,
  
• 
  world economic and political environment
  

These are the indicators why management concept has not been put in mind. Family controlled firms intervene all steps of the production process. Goods and services finalize under the myopic view of families. Aggregation of management thought in each steps of the company led to governance thought.