Corporate Governance Research Paper

Corporate governance in itself has no single definition but common principles which it should follow. For example in 1994 the most agreed term for corporate governance was “the process of supervision and control intended to ensure that the company’s management acts in accordance with the interest of shareholders” (Parkinson, 1994)1. Corporate governance code is not a direct set of rules but a self-regulated framework which businesses choose to follow. This code has continued to change in the past 20 years in accordance with what is happening in the business world. For example the Enron scandal caused reform in corporate governance with the Higgs Report which corrected the issues which were necessary. Although it does not quickly fix problems, it gives a better framework to

Kluyver, C. (2013). A primer on corporate governance (2nd ed.). New York, NY: Business Expert Press.

Characterised by nation-specific features and different regulatory systems, the use of corporate governance mechanisms varies across different countries in the world. This paper will help investigate those differences by examining the current corporate governance practices of three different companies representing for three powerful countries namely Japan,

Corporate governance represents the structure associated with the management of activities at a firm in a manner that ensures the protection of the shareholders’ residual claims. Further, the concept elaborates the mechanism instituted at the organizational level to ensure that business operations conform to various legal, ethical, and social expectations. China represents one of the most dynamic and fast growing economies across the globe. The expansion of the Chinese market highlights the necessity for the adoption of business practices that reflect not only the national conditions but also international practices (Holmes & Wong, 2015). Issues concerning culture, laws, enforcement, and the constitution of boards in the Chinese environment should be reconsidered for China to sustain its momentum as one of the dominant emerging economies. The “Code of Corporate Governance for Listed Companies in China” provides the legal framework that underlines the structure approved for Chinese businesses (Holmes & Wong, 2015).

Qian observes that large-scaled state-owned enterprises, even though experienced managerial reforms and ownership reconfiguration, continued to suffer from declining performance, i.e. profitability. The new corporate organization consisting shareholders, board of directors and supervisory board clashed with the role of the party committees. In this case, Qian pointed out that the key reason for this failure was the party’s control over the appointment of senior executives of SOEs. The executives’ politicized standing overshadowed their role in enhancing the corporate performances. The secretive selection

Corporate governance can be defined as the system companies used in order to meet the company’s goal or in order to achieve company’s target. Board of directors are the main people who have the power or authority to run the company; and are

Moreover, the percentage of family members on the board means, that the agency theory argues diffused ownership environment, firms will disclose more information to reduce agency costs and information irregularity. According to this hypothesis testing, non-executive directors and the existence of an audit committee representation have been more dominant in the Hong Kong companies. Over the period of this research that the writers have collected and serves more than 610 top personalities in the listed firms in the Hong Kong. On top of that, the writers further sent off additional questionaries 535 to the financial analysis in the top financial and brokerage firms in the Hong Kong. The main objective is testing and reliability of perception

Corporate governance can be defined as the process, customs, laws by which the affairs of a company are managed and controlled it also

This paper investigated the corporate governance of Board of Directors of listed companies in China. As the research results shows that, the governance of the board in China plays a critical roles for the listed firms corporate performance. This paper discusses the board features including board size, board meetings frequency, board independence, and the leadership structure of the board in china in relationship with the corporate performance. For the corporate performance, I am using the return on equity (ROE) and Earnings per share (EPS) as the proxy for the corporate performance. Based on my analysis and previous research, it verifies that the size

Corporate governance is also the way a corporation policies itself. The method is governing the company like a sovereign state, in stating its own customs, policies and laws to its employees from the highest to the lowest levels. Corporate governance is intended to increase the accountability of the company and to avoid massive disasters before they occur. Well-executed corporate governance should be similar to a police department’s internal affairs unit, weeding out and eliminating problems with extreme prejudice. The corporate governance mechanisms provide assurance that the people who sink in the capital will get back the return on this capital.

Under the shareholder model of corporate governance, majority of large firms are controlled by managers but primarily owned by outside shareholders. Development of agency problem occurred, due to this separation of ownership and control between firm’s managers and owners. Even though internal managers are responsible for business operations, shareholder voting rights provide them with some indirect control over the operations of the firm. Widely distributed ownership in shareholder method offers stronger protection for investors and shareholder democracy.

Corporate Governance is the relationship between the shareholders, directors, and management of a company, as defined by the corporate character, bylaws, formal policies and rule laws. The corporate governance system was designed to help oversee the decisions and best interest of the shareholders. The system should works accordingly: The shareholders elect directors, who in turn hire management to make the daily executive decisions on the owner 's behalf. The company 's board of director 's position is to oversee management and ensure that the shareholders interest is being served. Corporate governance focus is with promoting enterprise, to improve efficiency, and to address disputes of interest which can force

Hong Kong’s position as an international economic and financial center is attributed to its exemplary corporate governance. With Hong Kong’s various authorities and regulatory bodies emphasizing on transparency and accountability for listed companies, Hong Kong was ranked first for corporate governance among 11 Asian countries in 2007. (Refer to Appendix 1)

Bhagat and Bolton (2008) examined the relationship between corporate governance and performance, and found that better corporate governance, board members’ stock ownership, and CEO-Chair separation are positively related to operating performance. They also found that the probability of management turnover is positively related to board members’ stock ownership and board independence when firms perform poorly.

Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals. Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the