Corporate governance in the U.K. impacts firm value and structure.
The study looked at how corporate governance affects the value of companies in the UK. They found that the ownership and control of a company are closely linked, with managers and the board of directors playing key roles. Managerial equity ownership and the board of directors are chosen optimally. However, directors' pay is more influenced by the company's structure than its performance. Large equity investors may not always monitor the company effectively.