Corporate Governance Research Paper

1270 Words6 Pages
Understandably Corporate Governance has evolved through the decades being an integral part of how an organization is run. When we talk about Corporate Governance, we talk about various factors which affect the governance of the organization as a whole and decision- making processes of firms which are important longing towards long-term success. So, considering Corporate Governance issues, the general principles focus on governance problems that result from the separation of ownership and control. However, this is not simply an issue of the relationship between shareholders and management, although that is indeed the central element. In some jurisdictions, governance issues also arise from the power of certain controlling shareholders over minority…show more content…
The level of good corporate governance would widely effect the investment decisions. Of particular relevance is the relation between corporate governance practices and the increasingly international character of investment. International flows of capital enable companies to access financing from a much larger pool of investors. If countries are to reap the full benefits of the global capital market, and if they are to attract long-term “patient” capital, corporate governance arrangements must be credible, well understood across borders and adhere to internationally accepted principles. Even if corporations do not rely primarily on foreign sources of capital, adherence to good corporate governance practices will help improve the confidence of domestic investors, reduce the cost of capital, underpin the good functioning of financial markets, and ultimately induce more stable sources of…show more content…
The evolution and sophistication of local markets has been enhanced by the activity of foreign multinationals, while home-grown multinational enterprises have evolved and are having an effect overseas entering developed markets (Lee 2013; Santiso 2013).
Principles of honesty, integrity, accountability, transparency, and fair dealing are fundamental to the viability and trustworthiness of any corporate system possessing, or actively seeking, external investors. However, to assume that these principles are bound up with one system of corporate governance, and other systems of governance invariably lack these essential foundations, is one-dimensional xenophobia.

In general, Corporate Governance generally arises from shareholders’ rights, a weak regulatory framework, lack of enforcement, weak monitoring, a lack of transparency and disclosure, and ineffective boards of directors, among others.

The corporate governance framework should promote transparent and efficient markets, be consistent with the rule of law and clearly articulate the division of responsibilities among different supervisory, regulatory and enforcement
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