Corporate governance role in the development of securities market

Abstract

One of the factors determining the development of the securities market in the country is the level of corporate governance. It is clear that without respect for the rights of small shareholders of the company, is not created for them the possibility of effective enjoyment of these rights and on the possibility of leaving the company, and similar factors make it difficult to attract funding through the securities market. From this point of view, the effect of creating a mechanism to protect investors' rights legislation of the country on the development of the securities market significantly. The financing of the national economy the main role belongs to the market for corporate securities. Securities market creates additional opportunities for financing firms. This creates an incentive for the company's development and corporate management firm. This fiscal squeeze in many cases firms to refrain from taking effective financial decisions, which in turn negatively affects economic development. Emerging in the country system of corporate governance is to ensure equal and fair treatment of all shareholders, including small shareholders, shareholders and foreign shareholders who do not participate in managing the company.