Corporate Governance For A Future Economic Crisis Essay

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-Can corporate governance prevent a future economic crisis. Ten years ago, corporate governance was still in the concept stage. There wasn’t a lot of information about corporate governance. After some big corporate failure that hit the economy, it has become obvious that corporate governance matters. After the collapse of Enron,Wordcom,..a new regulation was born (Sarbanes Oxley).The law was implement to increase transparency and to promote integrity and accuracy inside the companies. Unfortunately, the (Sarbanes Oxley )law couldn’t prevent another economic crisis because some years later after the law ,and in 2007 the world experienced the biggest economic crisis since the great depression of 1930.So My research study focused on the role of corporate governance to avoid similar crisis in the future. -Literature Review The financial crisis of 2007 is considered by many economists to be the worst since the Great Depression of the 1930.Many causes can be connected to the financial crisis .The U.S Senates Levin-Coburn said: That the crisis was a result of high risk, complex financial product, failure of regulations. The Organization for Economic Co-operation and Development (OECD) linked the crisis to poor corporate governance system. Also the Shareholder Bill of Rights act of 2009 found failure in corporate governance. The financial Crisis Commission conclude that the crisis was avoidable and was caused by failures in financial regulation,dramastic failure of corporate
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