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Importance of Corporate governance
Finance & Accounting
Pages 8 (2008 words)
Importance of Corporate Governance Table of Contents Introduction 3 Corporate Governance 3 Convergence of Corporate Governance Systems 4 Reasons behind convergence 5 Arguments against the convergence 7 Comparative Analysis 9 Conclusion 10 References 11 Introduction The concept of corporate governance is not as new as the concept of ‘corporation’.
However, different types of definitions are provided in various reports. A very simple definition can be found in the reports like South African King Report and Kingdom Cadbury Report. In these reports corporate governance is defined as a “system by which companies are directed and controlled” (du Plessis, et al, 2010). Clearer definitions began to come after two big companies namely Enron and HIH Insurance Ltd collapsed. In 2007, Australian Securities Exchange (ASX) released a proper definition where corporate governance is said to be a framework of rules, systems, processes and relationships by and within which authority is controlled and exercised in corporations (du Plessis, et al, 2010). With the rise of globalization an aspect that has come up as a significant issue is the convergence of corporate governance systems. This paper attempts to gain insight into this issue. It tries to find out whether the convergence of various governance systems is actually possible or not. In the process of doing that, the paper includes several important data that are collected from different books and previous research works. Not just facts, but a major portion of the paper is consisted of the analysis of these facts. Corporate Governance Before getting straight into the main subject i.e. ...
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