Corporate Governance And The Global Financial Crisis

12000 Introduction 1000 In the last few years, because the corporate scandals and collapses during the global financial crisis. Public have strong reason to believe that the apparent lack of effective boards and unnecessary executive remuneration packages have all contributed to explosion of interest in this area. Therefore, corporate governance is an area that has grown rapidly. Corporate governance is now an essential part of everyday business life. The importance of corporate governance is not only just in the UK but also globally including the USA, Europe, and Asian. The main reason to developing Corporate Governance is the protection of investors. Investors need not only reliable financial information, but also corporate governance information to be protected against unethical and dishonest behaviour by management or directors. Corporate Governance is the system which checks and balances both internal and external to companies. Besides, it meritorious to ensure that companies discharge their accountability to all their stakeholders. Moreover, Corporate Governance also acts in a socially responsible way in all areas of their business activity. (Solomon 2013). Thus, it is vital to analysis a company’s behaviours and evaluated its performance in Corporate Governance. (Monks. R and Minow N corporate governance 2009) Normally, the companies board structure which characterized by one single board contain both executive and non-executive directors. The directors are workingShow MoreRelatedEssay on Overview of the Recent Financial Crisis in the US1468 Words   |  6 Pages1. Introduction The financial crisis started in the USA because of subprime mortgage crisis in 2007. As a consequence of it, a credit crunch was originated and it quickly spread from the real state sector to other sectors, and furthermore, from USA to other countries. 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