Corporate Governance Case Study

1243 Words3 Pages

The role of corporate governance in improving companies’ performance Content Introduction Article 1 Article 2 Article 3 Article 4 Reference List Introduction With economic development, the enterprise in the whole society 's economic system has become increasingly important role. Which is the result of an interaction. In terms of the development of enterprises, corporate governance as a system of company funds to ensure investors obtain the return on investment arrangements. Research on corporate governance for the healthy development of enterprises has important reference value. Corporate governance is a considerable research theory of the enterprise. That is also constitute the core …show more content…

These specifically in three areas: First, the good corporate governance structure is conducive to growth of the company 's performance. Only business development, corporate performance can follow increase as a result and a good corporate governance is requirement for a healthy, competitive company. Second, good corporate governance structure could reduce the company 's operating costs, improve company’s performance. Companies operating more efficiency, reduce the cost of internal coordination and oversight costs makes the total cost of the company towards as minimizing as possible. Third, good corporate governance structure is conducive to attracting long-term stability of external capital, to energize the continued growth of the company. According to McKinsey report (2002), three-quarters of investors say when in the choice of investments, corporate governance is as important as financial indicators of the company. Corporate governance doubtless is a very important role in improving company

Open Document