Capital Market Governance

Corporate governance plays a crucial role in boosting 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 principles of transparency and full disclosure of financial information.

·       Adopting Effective risk management practices.

·       Establishing sound governance framework for the Board of Directors.

The full implementation of governance instruments helps in:

·       Increasing disclosure and transparency.

·       Provision of valuable financial information to various market stakeholders.

·       Reflecting stakeholder confidence.

·       Enhancing efficiency of the securities market.

Ø  Benefits of Corporate Governance:


·       Improve efficiency of corporate management.

·       Boost investor confidence.

·       Reduce capital cost.

·       Increase market value of companies.

·       Enhance governance of the capital market.

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.

Last modified: May 15, 2024

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