Introduction Corporate stakeholders are often faced with the conflict of interest of pursuing personal goals other than the intended objectives of the company. Therefore, there is a need to put in place appropriate mechanisms to effectively deal with the potential conflicting issues in the organisation. For instance, there should be clear policies and management guideline to facilitate running of the corporation. The stipulated management principles will act as a guide to control and monitor the activities of all the stakeholders in the corporation. For example, when a manager engages in some activities that conflict with those of the company, then there is need to put in place stiffer penalties for the offenses and malpractices committed. In certain cases, the management team might reward themselves high amounts of bonuses without necessarily considering the amount of net revenues earned from the operation of the company. In fact, such instances will definitely make the company to incur high expenses, which consequently reduce the net earnings and the profitability of the company (Bodie, Kane & Marcus 2008, p.29). As a result of this, the shareholders would not be entitled to receive some good dividends, as returns on their investments. Moreover, the conflict of interest among the stakeholders of the company has made the shareholders to pass a vote-of-no-confidence on some of the board members during the annual board meetings. The presidents of the company are awarded bonuses due to their hard work so as to motivate them. However, when the performance is dwindling as witnessed in the China’s publicly listed companies, the stakeholders can be forced to terminate the contracts of the top management team of the corporation. Literature Review Corporate Performance According to Wittner it is important to study the way corporations are structured and governed to avoid possible cases of capital mismanagement (Wittner 2003, p.66). A poorly defined capital structure of a company makes it impossible to maximise revenue that can facilitate the declaration of dividends. It is possible to note that even in a country; there are many differences in terms of the corporate performance and management. There is a hierarchical difference in various corporations that exist in China’s publicly listed companies. Therefore, it is prudent to justify that corporate structure differs from one organisation to another. However, arrangement and organisations in various corporations are ways through which different structures are formed to achieve a common goal, that is, the managerial accountability (Peteraf 1993, p.189). In the pre-bureaucratic corporate structure, there is a centralised structure with the role of strategic decision making left to the top management leaders, which is the best for solving very simple problems. This system is very common among the small corporations and mostly communication is done on one-on-one basis. Though, it lacks a fundamental role, that is, standardisation of roles and responsibility, the consequences of this structure on managerial accountability is that it helps the strategic director to influence and control development /growth of the corporate organisation (Peteraf 1993, p.188). Timmer revealed that there are some effects of corporate