Shareholder Confidence Research Articles

Breaking down the impenetrable wall: What are the barriers to good corporate governance practices above all?

Good corporate governance practices are essential in every organisation to ensure accountability and due diligence enhancing corporate value. However, some countries face barriers to good corporate governance practices such as poor regulatory frameworks, perceived constraints, and threats from external factors, etc. Therefore, the organisations will face consequences such as eroding shareholder confidence, declining market value and the organisation integrity. Hence, the study’s main objective is to systematically review the barriers to good corporate governance practice in the global context. This study uses a systematic literature review whereby the authors analyse 24 selected articles. Therefore, the main findings indicated ten barriers to good corporate governance practices. The ten barriers are weak regulatory framework, perceived constraints, poor quality of information, external business factors, lack of awareness, confusion of authority, lack of monitoring, board diversity, transparency and investor protection. These findings provide significant contributions in theoretical development for potential scholars and practical implications for organisations, stakeholders, investors, and corporate leaders who aim to strengthen the governance framework, improve organisational resilience and promote sustainable value creation to understand these barriers comprehensively.

Corporate governance and shareholders’ confidence in cooperatives: a systematic literature review

Background The confidence of Bottom 40 (B40) shareholders is crucial for cooperative’s sustenance within wider corporate governance. An in-depth study on cooperatives is needed, as they play a crucial role in the Malaysian economic system and contribute greatly to the country’s social development. However, in the current landscape, confidence among shareholders is at stake. This study aims to identify the research gap into corporate governance for cooperativess in relation to B40 shareholder confidence, as well as identify current study challenges and develop a conceptual framework for future research. Methods We conducted a systematic literature review, with the use of agency theory to assess shareholders’ confidence. Emerald, ProQuest, InderScience, Scopus and Science Direct were the online databases used in this study to search five keyword phrases: corporate governance, confidence, cooperative, agency theory and Bottom 40% (B40) household. Tranfield’s five stages were used to conduct the systematic review. Results Only 5 of the 324 studies assess shareholders’ confidence in cooperatives, as well as one paper on B40 and two papers on agency theory. Our review presents three major findings. First, research in the context of B40 shareholder’s confidence in cooperatives is scarce. Second, the challenges related to shareholders’ confidence in B40 are major issues in the context. Third, research on agency theory in the context of shareholders’ confidence within cooperatives and corporate governance is still scant. Conclusions This review urges the research community to conduct more studies based on the highlighted research gaps.

TANGGUNG JAWAB DIREKSI TERHADAP PEMEGANG SAHAM ATAS PELANGGARAN PRINSIP KETERBUKAAN INFORMASI DI PASAR MODAL.

This study examines the responsibilities held by the board of Directors of the company to shareholders in the context of violations of the principle of disclosure of information in the capital market. With a focus on the dynamics of the relationship between the board of directors and shareholders, this study analyzes the impact of violations of the principle of disclosure of information on shareholder confidence and the value of the company. The results of the study are expected to provide insight into the role of the board of directors in ensuring proper information disclosure, as well as highlighting relevant legal and regulatory aspects in maintaining the integrity of the capital market. This study uses the type of normative juridical research by analyzing legal materials sourced from legislation and realized with various references from literature review. The results of this study that in the context of Capital Markets, companies that go public get additional capital from the public stock buyers. Previously, shares were only owned by a certain number of people such as family, relatives, and friends. However, by going public, shares are issued and sold to the general public, creating independent shareholders whose motivation is more on making a profit. The principle of disclosure becomes important, realized through the preparation of a prospectus that must contain all the details and material facts, made clear, and accountable to the board of directors. Violation of the principle of openness by the board of Directors may result in sanctions, such as reprimand or dismissal from office, in accordance with Law No. 40 of 2007. At the General Meeting of shareholders (GMS), the board of directors must account for their actions, and the legal consequences may include dismissal and civil or criminal liability. This principle affirms the importance of integrity in maintaining transparency and trust in the capital market.

ВПЛИВ ДИВІДЕНДНОЇ ПОЛІТИКИ НА РИНКОВУ КАПІТАЛІЗАЦІЮ КОМПАНІЙ

Dividend policy plays a leading role in the system of measures for managing the market value of a company. The main objective of developing a dividend policy is to strike a balance between the current consumption of profit by owners and its growth in the future, thereby maximizing the market value of the company and ensuring its strategic development. The article summarizes the types of dividend policy of companies with reference to three dividend payment methods: conservative, compromise and aggressive, and identifies their advantages and disadvantages. The conservative approach to forming the company's dividend policy includes a zero dividend policy, which means the termination of dividend payments. The compromise approach to the company's dividend policy provides for stable and guaranteed dividend payments at the minimum level expected, depending on the company's performance. The company's aggressive approach to dividend policy is complemented by a "100%" dividend policy, i.e. the allocation of the entire amount of the company's net profit to the payment of dividends. The article notes that, despite the various theories of dividend policy, financial managers usually try to maintain a balance between paying sufficient dividends (to maintain shareholder confidence) and reinvesting profits (to maintain a certain rate of corporate development). It is clear that every company, in its practical financial activities, seeks to achieve an optimal balance between paying sufficient dividends and reinvesting profits. The specific motivation of each of the participants and their interaction determine the peculiarities of the model of the company's dividend policy, which is an external implementation of corporate conflicts. At present, Ukrainian companies take a conservative approach to the formation of dividend policy, applying a zero dividend policy or a residual dividend policy. We believe that a steady increase in the market capitalization of companies, including through an effective dividend policy, should be seen as a criterion for the success of the corporate reform strategy.

MODERASI PROFITABILITAS DAN LEVERAGE TERHADAP PENGARUH KEBIJAKAN DIVIDEN PADA NILAI PERUSAHAAN

Shareholders generally want a relatively stable dividend distribution because it reduces uncertainty about the expected returns from the investments they make. It can also increase shareholder confidence in the company so that the share value can also increase. This study aims to obtain empirical evidence of the effect of dividend policy on firm value and the ability of profitability and leverage variables as moderating variables. The approach used in this research is a quantitative approach in the form of causality. The location of this research was carried out on the Indonesia Stock Exchange in manufacturing companies listed during 2017-2019. The sampling method used in this study was a saturated sample and obtained 15 manufacturing companies that distributed dividends in a row during 2017-2019. The data were then analyzed using a moderated regression analysis test. The results of the study explain that the dividend policy variable has no effect on firm value, the leverage variable as a moderating variable strengthens the effect of dividend policy on firm value and the profitability variable is not able to moderate the effect of dividend policy on firm value

Research on the impact of corporate social responsibility information disclosure and corporate innovation in China

China started to implement a new system in 2008, asking fractional companies to make public their corporate social responsibility information disclosure. The financial and corporate governance data of Chinese A-share listed businesses from 2007 to 2016 was gathered in order to determine any potential relationships between the mandated corporate social responsibility disclosure system and company patents. According to the two opposite hypotheses of the information hypothesis and reputation hypothesis, the results show that the number of patents of companies surveyed has increased significantly after the implement of the policy of mandatory CSR disclosure. Additionally, after companys patents are separated into invention type patents and utility models, industrial design (non-invention type) patents, invention type patents significantly increase in comparison. This means that the information hypothesis has been supported more. CSR disclosure can effectively alleviate the information asymmetry existed in the internal of the enterprise, increase shareholders confidence, and reduce the problems of corporate financial restrictions. Several robustness tests have proved that the model and conclusions are both steady. This may provide a reference for the government to improve the mandatory disclosure policy further and help improve the capital market development in China.

THE POLITICAL ECONOMY OF THE OIL INDUSTRY IN THE MENA REGION: THE CASE OF ANGLO IRANIAN OIL COMPANY (AIOC)

This study explores the intricate relationship between politics, economy, and social communication within the oil sector in the Middle East and North Africa (MENA) region, with a specific focus on Corporate Social Responsibility (CSR). It scrutinizes how the Anglo Iranian Oil Company (AIOC) handled the complexities of staff-related disclosures in their operations. Through the lens of political economy theory, the investigation unpacks the strategies AIOC employed to sustain societal approval and present their operations in a positive manner. Furthermore, the study probes into political-influenced narrative disclosures from AIOC's chairman and various political diplomats. It analyzes the potential usage of these disclosures as a strategic tool to safeguard and augment AIOC's political and economic dominance, particularly in relation to their competitive standing in Iran. Utilizing a theoretical framework rooted in political economy theory, it highlights disclosure patterns aligning with AIOC's policy and strategy to sustain shareholder trust. The research aims to cast light on employee-related press disclosures and the AIOC chairman’s statement. It seeks to discern whether these disclosures provide fact-based data that align with the critical realism viewpoint, or if they are components of a strategic "game" designed to preserve shareholder confidence.

Shareholder Rights and Performance of Deposit Taking SACCO’s

Purpose:Greater attention has paid on shareholder rights in the 21st century by shareholders, regulators and the general public. Effective shareholder protection mechanisms have played a crucial role thus bolstering shareholder confidence and retention. this study probed the influence of shareholder rights on Deposit Taking SACCOs performance in Kenya.
 Design/Methodology: The relation was analyzed on the basis of all the 42 Deposit Taking SACCO’s in Nairobi County. The study relied on primary data which was gathered using structured questionnaires from senior managers. Both descriptive statistics and inferential statistics were employed for data analysis 
 Findings: The results affirmed that shareholder rights positively and significantly influenced Deposit Taking SACCO’s performance in Kenya.
 Implications/Originality/Value: This paper enriches current literature by examining the influence of shareholder rights on Deposit Taking SACCO’s performance. The findings may be of vital importance to policy makers when developing policies on shareholder rights. Deposit Taking SACCOs leaders should take cognizance of shareholder rights particularly the right to participate in decision making, right to equitable treatment and right to access information so as to enhance performance.

Corporate governance and shareholders’ confidence in cooperative corporations: a systematic literature review

Background: The confidence of Bottom 40 (B40) shareholders is crucial for cooperative corporation’s sustenance within wider corporate governance. An in-depth study on cooperatives is needed, as they play a crucial role in the Malaysian economic system and contribute greatly to the country’s social development. However, in the current landscape, confidence among shareholders is at stake. This study aims to identify the research gap into corporate governance for cooperative corporations in relation to B40 shareholder confidence, as well as identify current study challenges and develop a conceptual framework for future research. Methods: We conducted a systematic literature review, with the use of agency theory to assess shareholders’ confidence. Emerald, ProQuest, InderScience, Scopus and Science Direct were the online databases used in this study to search five keyword phrases: corporate governance, confidence, cooperative, agency theory and Bottom 40% (B40) household. Tranfield’s five stages were used to conduct the systematic review. Results: Only 5 of the 324 studies assess shareholders’ confidence in cooperatives, as well as one paper on B40 and two papers on agency theory. Our review presents three major findings. First, research in the context of B40 shareholder’s confidence in cooperative corporations is limited. Second, the challenges related to shareholders’ confidence in B40 are major issues in the context. Third, research on agency theory in the context of shareholders’ confidence within cooperative corporations and corporate governance is still scant. Conclusions: This review urges the research community to conduct more studies based on the highlighted research gaps.

ТРАНСНАЦІОНАЛЬНІ КОРПОРАЦІЇ ТА ЇХ РОЛЬ У ФОРМУВАННІ СТРАТЕГІЙ УПРАВЛІННЯ ФІНАНСОВИМИ РИЗИКАМИ

The article reveals the role of transnational corporations (TNCs) in the modern globalized world and their influence on the formation of financial risk management strategies. The main focus is on the methods and tools that TNCs use to minimize potential losses and optimize profitability, namely: hedging, diversification, insurance, creation of reserve funds and the use of modern technologies. The article emphasizes the importance of a systematic approach to risk management to ensure the long-term stability and competitiveness of TNCs at the international level. Emphasis is placed on how globalization and growing international competition require TNCs to better understand and adapt to financial challenges. Special attention is paid to the impact of modern technologies on risk management processes, including automation, analytics and forecasting. It highlights how MNCs can use these technologies to improve their efficiency, ensure financial stability and strengthen the confidence of shareholders and investors. Ultimately, the article highlights the importance of an innovative approach to financial risk management in the ever-changing and uncertain global business environment. Case studies and case studies are reviewed, demonstrating how leading MNCs have dealt with specific financial challenges and what strategies they have used to ensure their profitability and growth. Through these examples, readers are provided with a deeper understanding of the real-world application of theoretical concepts in the field of risk management. Future trends in the field of financial risk management are indicated, in particular, the role of artificial intelligence, blockchain and other advanced technologies that can radically change the approach to financial planning and analysis. It is emphasized that the success of modern TNCs largely depends on their ability to adapt to rapidly changing market conditions, using innovative strategies and technologies for effective financial risk management.

The main aspects of effective corporate governance at the modern level

The article outlines the main aspects of effective corporate governance, the formation of corporate relations in Ukraine. The main components of modern corporate enterprise management are studied. The problems of modern corporate management of enterprises related to the implementation of control processes are considered. The international experience in corporate governance is analyzed, which demonstrates a solid basis for creating basic principles and provisions for conducting this type of activity. It is proved that for the reliability and legitimacy of economic relations, for the protection and investment confidence of shareholders and their partners, the corporate governance system is obliged to provide full and timely demonstration of information on financial condition, performance, ownership and management. The directions of development of the corporate governance system for the economy of the country in general are determined, and the necessity of partnership relations between the shareholders in particular is considered. It is investigated that the current conditions require the development of an effective corporate governance policy during the global pandemic. To do this, the main tasks must be solved, such as the formation and implementation of a strategic modern system of corporate governance and the creation of conditions for effective interaction between all participants in the management process. It is considered that there is no generally accepted model of corporate governance, which would be used at the international level. It is noted that the vast majority of Ukrainian enterprises use the national model of corporate governance. This model was formed on the basis of a combination of basic principles of the German and Anglo-American models. According to this model, the main shareholders of companies are its employees, management, banks, the state. At the same time, banks remain the main source of funding, and this is more typical of the German model of corporate governance. The domestic model of corporate governance, which also has common features with the Japanese model, namely, a significant role is given to the state in the management process. It is noted that in Japan, the inclusion of government representatives in the system of corporate governance is not based on the presence of a significant stake in the state, as in Ukraine. In the Japanese model of corporate governance, the interaction between the main participants in the relationship is aimed at establishing new business contacts, rather than obtaining the maximum amount of profit It is determined that corporate governance at the current level is a system of relationships that sets up certain procedures for making management decisions. The effectiveness of corporate governance is to increase the level of profitability of the enterprise through the introduction of proper control, effective management and financial transparency.

The Importance of Liquidity and Profitability in Enhancing the Banking Value in Private Banks for the Period 2016 - 2019

The article aims to study the liquidity that is required to be provided optimally and the profitability that is required to be achieved by the bank, and the impact of both of them on the value of the bank, and their effect of both liquidity and profitability on the value of the bank. Hence, the research problem emerged, which indicates the extent of the effect of liquidity and profitability on the value of the bank. The importance of the research stems from the main role that commercial banks play in the economy of a country. This requires the need to identify liquidity in a broad way and its most important components, and how to measure it. For the purpose of avoiding liquidity risks, liquidity should be managed by urging the bank to adopt good liquidity management and to achieve the profits that the bank wants to achieve by employing the liquidity available to it. It represents an important factor for increasing profits and increasing the confidence of shareholders and depositors; thus, maximizing the wealth of shareholders and the bank's wealth and, hence, raising the bank value. Consequently, this article is based on a main hypothesis that "there is no effect of profitable and liquidity on the bank value". This in turn is divided into two sub-hypotheses as follows:
 H1. There is no effect of quick liquidity on the bank value.
 H2. There is no effect of the return on deposits on the bank value
 In order to achieve the objectives and hypotheses of the study, the mathematical indicators were studied and analyzed to find the relationship between the variables and the effect according to statistical methods, where the research used the a simple regression statistical method, Is used by using the Statistical Package for Social Sciences (SPSS), and the quantitative measures, which included such indicators as the quick liquidity indicators to measure liquidity, the return on deposits to measure profitability, and Tobin's Q bank value measurement. The research sample consisted of four private banks (Middle East Bank, Gulf Bank, Al-Ahli Bank and Bank of Baghdad) for the period from 2016 to 2019. The most important conclusions reached by the research were the lack of effect of both the liquidity and profitability on the value of the bank. The research gave a number of recommendations, the most important of which is to urge banks to reduce the excess liquidity ratios and exploit them in different investment fields, as well as to go towards resources that achieve higher profitability rates than others that are characterized by their low cost. The research also recommended not to keep excess liquidity ratios at a high rate because of their effect on the profitability that the bank seeks to achieve

Does gender diversity on the board reduce agency cost? Evidence from Pakistan

PurposeThis study aims to examine the effects of board gender diversity on agency costs in non-financial firms listed on the Pakistan Stock Exchange (PSX).Design/methodology/approachMultiple regression analysis is used to determine the impact of board gender diversity on agency cost. The research used panel data consisting of 2,062 firm-year observations of 226 non-financial firms listed on the PSX from 2008 to 2019 to test the proposed hypothesis. In addition, the Blau and the Shannon indices were used to checking for robustness.FindingsThe results indicate that female presence on the board significantly reduces the agency cost and, hence, mitigates the principal-agent conflict. Moreover, consistent with the critical mass theory, it was found that boards with three or more female directors have a stronger impact on reducing the agency cost, as compared to two or fewer female directors on the board.Research limitations/implicationsThe sample was restricted to non-financial firms listed on the PSX only; therefore, the results reflect the attributes of Pakistan’s business environment. A similar analysis in the context of other countries may generate different results.Practical implicationsThe findings imply that female directors play an important role in reducing agency conflicts between shareholders and managers by enhancing monitoring through effective governance mechanisms. The policymakers, therefore, should focus on female career development and encourage professional training programmes to generate a fair, competitive environment for senior female management.Originality/valueThis study attempts to fill the literature gap in that no similar study covers the non-financial firms’ listed firms in Pakistan. The paper supports the reforms made by the code of corporate governance by making the placement of female directors mandatory on Pakistani corporate boards. Overall, support is provided for the view that regulators should favour gender quotas regarding the composition of the board management team of listed firms to reduce agency conflicts and gain shareholder confidence.

PENGARUH KETERLIBATAN PEMANGKU KEPENTINGAN TERHADAP PENGUNGKAPAN LAPORAN KEBERLANJUTAN BERDASARKAN GLOBAL REPORTING INITIATIVE (GRI) G4

The purpose of this study is to determine whether there is any influence from the involvement of shareholders, employees, government, and media on the disclosure of sustainability reports based on GRI-G4. This study uses multiple regression linear methods with a quantitative causality study design supported by secondary data. Sample taken by the method of purposive sampling with the number of 35 companies listed in the Indonesia Stock Exchange in 2016-2019 and discovered140 sustainability report. The data collection technique used in this research is documentation. The results of this study indicate that companies that get shareholder involvement have a positive and significant effect on the disclosure of sustainability reports. It is suggested that shareholders react to the disclosure of sustainability reports which is pushed from the financial market so that the level of shareholder confidence increases by increasing the level of report disclosure. Meanwhile, the involvement of employees, government, and media has no effect on disclosure of sustainability report. This is because employees tend to think that social responsibility can add to the burden companies so that they can reduce their salarie, as well as weaknesses related to the regulations for disclosing sustainability reports and the media are platforms that are misused by people in Indonesia.

Board Effectiveness and Firm Risk

This study provides empirical evidence on the impact of board effectiveness on firm risk. The author considers the Board Shareholder Confidence Index (BSCI) to proxy for board effectiveness of firms included in the S&amp;P TSX Composite. Risk measures considered in this study include total risk, idiosyncratic risk, systematic risk, and volatility-of-volatility. He reports statistically significant negative relationships between board effectiveness and alternative firm risk measures, except for systematic risk. This relationship is particularly strong during periods of market distress. Considering analyst coverage and strategic ownership as competing monitoring channels for board effectiveness, the author observes a substitution effect during normal market periods and a supplementary effect during periods of market distress when an investor’s level of uncertainty is high and “<i>every little bit helps</i>.” The findings also note the importance of corporate governance aspects in an ESG risk management framework. <b>TOPICS:</b>ESG investing, VAR and use of alternative risk measures of trading risk, risk management <b>Key Findings</b> • Board effectiveness is associated with lower levels of firm risk. • Analyst coverage acts as a substitute for board effectiveness with respect to total risk, idiosyncratic risk, and volatility-of-volatility. • Strategic ownership and ownership concentration act as a substitute for board effectiveness with respect to systematic risk. • In general, alternative monitoring mechanisms act as substitutes during normal times but are supplements during periods of distress when uncertainty is high.

Consistency of corporate governance statements with the Corporate Governance Code provisions. The case of Romanian oil market

Abstract The purpose of corporate governance is to achieve a responsible and value-oriented control of a company. The corporate governance provisions promote and strengthen the confidence of current and future shareholders, creditors, employees, business partners and the general public in national and international markets. For the resilience of financial markets but also for sustainable economic development it is crucial as a governance practice of companies listed on financial markets to be enshrined in the current corporate governance codes’ provisions. Therefore, the approaches of this research bring to the public's attention the conformity of the corporate governance declarations of companies from oil industry that trade shares on the Bucharest Stock Exchange. The results show that, in 2019, the analyzed companies register a high level of compliance with the provisions of the Corporate Governance Code applicable on the Romanian financial market.

Corporate Innovation Generates Shareholder Confidence

This article will illustrate how a Strategic Corporate Innovation Management™ system can generate shareholder confidence through the continued and timely introduction of newly anticipated inventive solutions that will successfully be adopted by a specified target market. In this context, shareholder confidence is the result from a positive perception about a corporation, where the acquisition of shares is based on the expected or predicted financial performance of the corporation in the foreseeable future. With the assumption that shareholder confidence has a direct correlation with share price, this research will illustrate there is also a direct correlation between the introduction of new inventions in the market (as corporate innovation) and the share price. With the share price as the common factor, there should then also be a direct correlation between corporate innovation and shareholder confidence. Tesla Motors’ historic share price was analyzed in comparison with product release dates as a case study. It was possible to observe from the “share price vs corporate innovation” graph that shareholder confidence increased just before new inventive solutions were launched into the market. It was also observed that in order to sustain the share price value and market capitalization, it was important that the market successfully adopt the new inventive product as well. As an additional benefit from this approach to deliver shareholder confidence through corporate innovation, the corporation itself will grow organically.

An Overview of Instruments and Tools to Detect Fraudulent Financial Statements

The great corporate frauds reported over the past twenty years have damaged and undermined the confidence of stakeholders, shareholders, investors, savers, and regulators. These facts have increased the focus on prevention and detection activities and tools. Fraud is costly, therefore it is very important to prevent and detect the fraudulent event to avoid high losses and damages to corporate financial health. Fraud detection is a dynamic discipline where traditional auditing activity is strengthened with new tools like Benford's Law and Beneish Model. This paper aims to focus on the analysis of the usage and application of these instruments in detecting accounting fraud.

Peran Market Timing Ekuitas, dan Strategi Korporasi dalam Menentukan Struktur Modal Perusahaan

The purpose of this study is to corporate strategies in terms of liquidity and growth is expected to increase the confidence of shareholders upon issuance of equity so that the firm has a low capital structure. Population data used are the financial statements of the companies listed in the Index IHSG period 2009-2017. The results of the analysis of the data rights issue period 2010-2016 shows that the equity market timing and capital structure is not supported. The test results influence the interaction between equity market timing and liquidity to capital structure shows that the higher of liquidity of the company has higher leverage. Meanwhile, companies that issue stock when prices are high and have a high asset growth, the company has a capital structure that is low as high.

Corporate Governance and Organisational Performance: Analysis of Nigeria Stock Exchange Listed Companies

&lt;p&gt;&lt;em&gt;Corporate governance is relevant in both developed and emerging economies. The study investigated the impact of corporate governance on organisational performance, using thirty (30) randomly selected listed companies in the Nigeria Stock Exchange (NSE) in the year 2016. The study focused on three corporate governance variables (i.e., Board Size, Board Independence, CEO Duality/Tenure); and two performance variables - i.e., Returns on Asset (ROA) and Returns on Equity (ROE). The study does not cover the market measure performance variable of Tobin’s Q. The study is an empirical research, with analytical research design. Secondary data, extracted from published annual reports of selected quoted companies and NSE website, is used for the study. The findings revealed a positive correlation between board size, independence directors, and performance variables; but, showed a negative correlation between CEO tenure and performance variables. The result showed that number of directors was not positively related to performance in selected quoted companies in terms of ROA; but, it revealed a positive correlation between board size and performance in terms of ROE. It also showed that the correlation between CEO tenure and performance variables was negative on the two performance variables (ROA and ROE). Regarding relationship between CEO Duality and performance variables (ROA and ROE), the result showed that CEO Duality has a positive correlation with ROA; but had a negative relationship with ROE. Generally, the study revealed that adoption of sound corporate governance practices by listed companies can improve their performance. Companies can benefit from this improved corporate governance practices by way of increased investment from investors and reduced capital cost. Shareholders confidence would be enhanced with attendant improvement in shareholders wealth. The nation’s economy would also benefit from sound corporate governance practices by way of improved GDP. &lt;/em&gt;&lt;/p&gt;