Corporate Values In Corporate Governance

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Corporate Governance as stated in the statement above, function as agents of shareholders, within the corporate governance ecosystem. Shareholders who exercise their rights as shareholders, directly influenced the boards, can ensure responsible actions by companies. Gatekeepers and influencers, insinuated between the shareholders and company, play an important role in promoting self and market discipline, hence in reducing the need for regulatory discipline. Last but not least, private and public enforcement have an important role in ensuring that corporate governance are held accountable through actions by the regulators parties. Proactive actions by the various parties is crucial and this reinforces the corporate governance culture and ultimately…show more content…
The latest MCCG guideline places greater emphasis on the internalization of corporate governance culture. This is not limit to listed companies, but also encourages non-listed entities including state-owned enterprises, small and medium enterprises (SMEs) and licensed intermediaries to adopt and embrace the code (figure 3). By embedding corporate governance culture early will allow collaboration between relevant stakeholders to develop a corporate governance toolkit for SMEs to ease them into embracing good governance practices. This MCCG is effective immediately from 26 April 2017. In addition, strong corporate governance culture must be introduce on a dynamic synthesis of efforts between regulators and the market. Figure 3: Extract from The Star Online 26-April-2017 - SC releases new code on corporate governance However, during the 1990s to early 2000, the issue of corporate governance was almost non-existence. During this time profits and shares prices rose substantially, investors forgot all about corporate governance. Usually investors thought it was implicit that successful companies maintained good corporate governance standards. During this time there is no real reason to ask management about their corporate governance practices when the stock market in early 2000 and following corporate collapses that investors realized the…show more content…
The findings shows significant positive association between Corporate Governance effectiveness and stock market liquidity. Robust to alternative liquidity measurements, to alternative estimation methods, and to endogeneity bias. Thus, constructs a corporate governance effectiveness measure by combining both internal and external monitoring

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