Corporate Governance Analysis

1545 Words7 Pages
The corporate governance includes the practices, rules and the processes which are controlled by the company. The corporate governance helps to balance the interest of different stakeholders of the company which includes management, suppliers, government, shareholders and customers. All the objectives of the company can easily be accomplished with the help of the corporate governance. The meaning of the governance includes controls, resolutions, policies and set of rules. It is the importance of the shareholders that they can directly affect the governance. A corporation includes the legal entity that must be separate from the owners. The corporation has the right that it can easily enter into the contracts, hire the employees in the company,…show more content…
The company has to follow the rules and requirements of the corporate governance. In order to attract more and more investors in the business, it is crucial for the company to apply the best practices of the corporate governance. It will also help the company in raising the finance of the company at very lower prices. In order to determine the results of the corporate governance, the earnings per share of the company and the net profit margin of the company. Kock (2012) suggested that in order to determine the level of the corporate governance and the performance of the corporate governance in the companies, for the corporate governance, the score card are used with the corporate governance and also earnings per share and the net profit margin is also sued. The analysis is required a lot of data so that first of all the company collect the data from the data. A research is conducted and takes a sample of 19 big companies that were registered in the official market. In order to evaluate the defect for the implementation of the corporate government. The scorecard analysis helps to evaluate the standards followed by the company. The score card is fully based on the main criteria and this area is included in the best practices and corporations, there are Severna different and most crucial areas of the analysis of the score card.…show more content…
All the companies listed in the official market have the implementation of very lower level. The company must follow the best practices of the corporate governance. If the company wants to survive in the global markets, increase the performance of working, profitable, want to attract new customers, and raise the capital of the company at the lower cost so that the underlying company must implement the standards and principles of the corporate governance in the decision making process and in the strategy. There is only an important barrier in the implementation of the corporate governance which includes the companies use the corporate governance as the goodwill of the company. The company does not consider the corporate governance as the most important part of the company. Different companies use the corporate governance as the implementation cost. It is essential for the corporate governance to pay the full attention on the potential benefits arises due to the implementation of the corporate
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