Does good corporate governance impact company bottom-line?
published: Friday | March 7, 2003 By Vindel Kerr, Contributor Issa THIS ARTICLE is in direct response to the concerns of those who require greater corporate governance from corporations throughout the world. People are now cognisant of the importance of good corporate governance to enhance business integrity, reputation and in fulfilling mandatory disclosure requirement to regulators and society at large. There are those who have expressed curiosity as to whether or not there exists empirical support for the role of good governance on a firm’s bottom-line. WHAT IS GOOD CORPORATE GOVERNANCE? The characteristics of poor governance can be compared to good governance, as shown in Table 1. As can be seen, the definition focuses mainly on the company’s board: the directors themselves, but also the board structures and board procedures are key factors in ensuring good governance. Shareholders are growing increasingly active in the United States and elsewhere because they believe that better c
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