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Essay example - The Importance of a Global Approach to Regulating Corporate Governance

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Finance & Accounting
Pages 10 (2510 words)
This paper talks that with growing impact of globalisation a lot of business organisations are observed to expand their business activities in different regions of the world in the recent times. There has been a significant increase in the demand for permanent funds that can be helpful for companies. …

Extract of sample

The discussion and analysis in the paper followed in MNCs and the approach towards global corporate governance system suggest that although theoretically it can be beneficial for the companies but practically it is a challenging task. No consensus has been made as yet regarding the best system of corporate law that is suitable for all the organisations worldwide and whether the convergence of the corporate governance mechanisms followed in organisations worldwide would increase their performance. To be more specific it is still unknown as to whether a new hybrid model of corporate governance mechanism would emerge or not.
The report makes a conclusion that the business environment worldwide is changing at fast rate and the corporate governance systems are required to adapt to such changes. It is quite inevitable that certain changes in the governance mechanism would occur but the big question lies behind the fact as to whether the corporate governance in a particular country would be able to successfully adapt to such changes or not. It is unlikely that some drastic change would occur to facilitate the global approach towards regulating corporate governance because the companies as well the investors are found to be reluctant to change a system that has been working well for them till now. With the increasing influence of globalisation, and with the organisational structure of MNCs becoming more and more complex, it is certain that some changes would occur in the corporate governance system. ...
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