Choirunnisa Arifa is a Lecturer in Department of Accounting, Faculty of Economics and Business at Universitas Gadjah Mada, Indonesia.
Sardar Islam is a Professor in the Institute of Sustainable Industries and Liveable Cities at Victoria University, Melbourne, Australia.
Corporate Governance Optimisation introduces an innovative approach to addressing some of the most pressing challenges in modern corporate governance. Combining game theory, mechanism design and hedge accounting, this research monograph offers a comprehensive framework for resolving agency conflicts, mitigating financial risks and improving organisational performance. At the heart of this book is an integrated model that unites governance, risk management and hedge accounting, demonstrating how these elements work together to address information asymmetry, incentive misalignment and decision-making complexities. Grounded in rigorous research and real-life data, the book provides practical insights into how hedge accounting can stabilise financial outcomes, support effective governance and enhance corporate value.
Designed for academics, researchers and professionals in accounting, finance and corporate governance, this book bridges theory and practice, offering a robust foundation for understanding and applying advanced governance models. It is particularly valuable for those interested in how mathematical frameworks like game theory can be used to solve real-world corporate challenges. While rooted in financial optimisation, the book´s findings have broad implications for policy, strategy and risk management in diverse organisational contexts.
Chapter 1. Introduction Chapter 2. Issues in Corporate Governance: Hedge Accounting, Mechanism Design, Corporate Finance, and Risk Management Chapter 3. A Conceptual Framework for Corporate Governance Mechanism and a Case Study Background Chapter 4. A Corporate Governance and Financial Management Model: Game Theory and Mechanism Design as an Optimisation Problem Chapter 5. The Numerical Corporate Governance Model: Specification and Results Chapter 6. Designing Corporate Governance Mechanisms: Optimal Corporate Finance and Accounting Risk Management Strategies Chapter 7. Corporate Governance Optimisation Implications: Hedge Accounting as Risk Management Strategy and Mechanism Design for Resolving Agency Problems
Combining game theory, mechanism design, and hedge accounting, this research monograph offers a comprehensive framework for resolving agency conflicts, mitigating financial risks, and improving organizational performance.
"The book develops a rigorous and innovative framework for corporate governance optimisation, integrating applied game theory modelling, mathematical optimisation, computer-based applications, risk management, hedge accounting and financial management. It demonstrates how mathematical modelling and optimisation can be applied to governance structures, agency problems, stakeholder interactions, financial decision-making and organisational performance. A particularly distinctive contribution is the integration of theory, mathematical modelling, joint optimisation algorithms, computational implementation and real-world applications within a unified corporate governance framework. The book thereby advances an important research direction: "Applied Game Theory in Corporate Governance: Framework, Modelling and Applications.” This interdisciplinary approach bridges corporate governance, game theory, accounting, financial management and risk management. This outstanding scholarly work can be regarded as one of the top few most significant books on corporate governance and real-world applied game theory modelling. Highly original, mathematically rigorous and practically relevant, it provides an important foundation for further research, teaching and professional applications. Its publication represents a significant scholarly achievement and contributes to the international research profile and academic reputation of Victoria University." - Kashif Rashid, Victoria University, Australia
