The central issue of corporate governance is

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Corporate governance is primarily concerned with ensuring that the interests of all stakeholders, including outside investors, are protected. The central issue in corporate governance is to protect outside investors from the controlling insiders, who may act in their own interest rather than in the interest of the company and its shareholders. While protecting creditors and resolving conflicts of interest between managers and shareholders are also important issues in corporate governance, they do not represent its central issue. Resolving conflicts between shareholders and bondholders is also important but is not a central issue in corporate governance.

The Central Issue of Corporate Governance Is