Governance
plays a vital role in boosting the investment climate and offers several benefits
to companies and their shareholders.
Corporate
governance improves the efficiency of financial markets through a raft of its
instruments, namely:
· Application of international accounting and auditing
standards.
· Formation of independent and effective audit committees.
· Conducting regular internal and external audits.
· Implementing transparency principles and full disclosure of
financial information.
· Adopting Effective risk management practices.
· Establishing sound governance framework for the Board of
Directors.
Ø The full implementation of governance instruments
helps in:
· Increasing confidence of stakeholders in the financial market.
· Attracting more investment.
· Reducing fraud and misconduct risks.
· Enhancing stability in the financial system.
Ø Benefits of Corporate Governance in Non-Banking
Financial Activities:
·
Improve efficiency of corporate
management.
· Boost
investor confidence.
·
Reduce capital cost.
·
Increase market value of
companies.
· Enhance
governance of non-banking financial activities.
Corporate governance is a shared
responsibility among all company stakeholders, including the board of
directors, executive management, shareholders, investors, creditors, employees,
and the community.
By implementing corporate
governance principles, companies can create a more attractive investment
environment and achieve long-term benefits for all stakeholders.
