Open AccessExamining models for measuring corporate governance to resolve financial crises
Author(s) -
Jabbar Sehan Issa,
Asmaa Habib Alnasiry
Publication year - 2021
Publication title -
international journal of research in social sciences and humanities(online)/international journal of research in social sciences and humanities
Language(s) - English
Resource type - Journals
eISSN - 2454-4671
pISSN - 2249-4642
DOI - 10.37648/ijrssh.v12i01.005
Subject(s) - corporate governance , shareholder , business , accounting , voting , representation (politics) , stock market , market for corporate control , financial market , finance , paleontology , horse , politics , political science , law , biology
This document deals with corporate governance and its impact on corporate performance andeconomic performance. This work is first summarized and based on previous work done, forexample, to provide a clearer expression of the corporate governance models of shareholdersand shareholders. It then addresses some of the key factors that lead to the effectiveness ofcorporate governance, and examines some of the strengths, weaknesses, and economicconsequences associated with different corporate governance systems. In addition toproviding information not provided in previous work, it also provides new information on theconcentration of ownership and voting rights in a number of OECD countries. This documentalso provides empirical evidence on the relationship between corporate governance, firmperformance, and economic growth. Finally, several policy implications are identified. Thisdocument shows how a corporate governance framework can influence the development ofstock markets, R&D and innovative, corporate activities and the development of an activeSME sector, thereby affecting economic growth. However, there is no single model ofcorporate governance, and each country has, over time, developed a variety of mechanisms toovercome representation problems arising from separation of ownership and control. Thisdocument examines the various mechanisms used in different systems (eg centralizedownership, executive rent schemes, stock market, inter-corporate shareholding, etc.) andexamines the available evidence. Whether they have achieved their goal or not. do. Forexample, one of the benefits of centralized ownership is that it provides more effectiveoversight of management and helps with representation problems arising from separation ofownership and control. However, some costs reduce liquidity and the likelihood of riskdiversification. Although dispersed ownership carries more liquidity, it may not provide theappropriate incentive to encourage the long-term