The hypothetical variables in forming practices of corporate governance

There is no right or wrong answer on corporate governance, obviously. Yet, there should be, in a specific condition, appropriate answers, which are hypothetically subject to following factors that are largely interlinked and thus work in a complementary manner:

• Firm and industry level
• Volatility of future cash flows (not NPV), which should be affected by
• Product/service market volatility and uncertainty both in customer acceptance and technological proof
• Maturity of enterprise organisation and management (e.g. startup v.s. multinationals)
• Capital intensiveness of business (e.g. Internet v.s. infrastructure)
• Existing capital structure and 'average' industry standard of D/E ratio
• Industry and country level:
• Legal and normative institutions related to corporate architecture
• Market orientation of human capital resources specific to industries (in-house training v.s. market price mechanism)
• Culture of social groups and associations

The lower items in the list might be less addressable in the short term, but changeable in the long run. I presume that practices of corporate governance should evolve through firm's adaptation to those conditions.