Open AccessThe Role of Corporate Governance in Financial Communication
Author(s) -
Selda Erdogan
Publication year - 2017
Publication title -
international journal of finance and banking studies
Language(s) - English
Resource type - Journals
ISSN - 2147-4486
DOI - 10.20525/ijfbs.v6i5.322
Subject(s) - corporate governance , business , context (archaeology) , capital market , competition (biology) , capital (architecture) , financial market , market economy , economic system , accounting , industrial organization , financial system , finance , economics , history , paleontology , ecology , archaeology , biology
Economic performance of countries is closely related to corporate governance systems of companies. For this reason, economic developments are affected by a positive or negative relationship according to the system’s practices. The companies which have weak corporate governance principles can cause narrow operation in capital markets of countries. At the end of this situation, the country’s economy is influenced adversely. If enterprises have a strong governance, the companies will provide more accurate investments with external and internal financial resources. Following this, it helps to achieve more efficient economic operation for both stakeholders and management staff. As a result of that, capital market operations occur in more comprehensive and more powerful manner and the country’s economy is affected positively. In this context, article tells the importance of corporate governance in financial communication while mentioning the kinds of implementing in developing and developed countries and it investigates the increased effect on global competition.