1.1 Corporate Governance:
Corporate governance is a combination of corporate policies and best practices adopted by the corporate bodies to achieve its objectives in relation to their stakeholders. It is also the field of economics, which studies the many issues arising from the separation from ownership and control. The fundamental objective of corporate governance reforms is to enhance transparency and transparency enhances accountability. It is widely recognized that transparency enhances trust among the major players within the governance framework. Various definitions and principles have been introduced to stabilize the corporate governance among corporate entities. The Main Objectives of corporate governance is: * To promote a healthy environment of investment
* To create a trust in a corporate and in its abilities
* To promote business sustainability and risk minimization * To improve the efficiency of the capital market
* To enhance effectiveness in the service of real economy Recently the terms "governance" and "good governance" are being increasingly used in information disseminated by various organizations. Bad governance is being increasingly regarded as one of the root causes of all evil within our societies. Major donors and international financial institutions are increasingly basing their aid and loans on the condition that reforms that ensure "good governance" are undertaken. Simply put "governance" means: the process of decision-making and the process by which decisions are implemented (or not implemented). Governance can be used in several contexts such as corporate governance, international governance, national governance and local governance. Since governance is the process of decision making and the process by which decisions are implemented, an analysis of governance focuses on the formal and informal actors involved in decision-making and implementing the decisions made and the formal and informal structures that have been set in place to arrive at and implement the decision. Government is one of the actors in governance. Other actors involved in governance vary depending on the level of government that is under discussion. In rural areas, for example, other actors may include influential land lords, associations of peasant farmers, cooperatives, NGOs, research institutes, religious leaders, finance institutions political parties, the military etc. The situation in urban areas is much more complex. Figure 1 provides the interconnections between actors involved in urban governance. 1.1.1 Objective of Corporate Governance:
* To maximize the contribution of firms to the overall economy * Improve the relationship between shareholders, creditors, and corporations; between financial markets, institutions, and corporations; and between employees and corporations * Also encompass the issue of corporate social responsibility, including such aspects as the dealings of the firm with respect to culture and the environment.
Corporate governance is becoming an increasingly important component of investor relations. The importance of good corporate governance has been highlighted by the wave of corporate corruption, scandals, especially in recent years. This has renewed academic interest in corporate governance. In the banking sector, good governance remains one of the most important characteristics of banking firms. For the majority of managers, shareholders, customers and other stakeholders, good governance is the foundation for their mutual trust. The disclosure of governance information is therefore a crucial strategic task for corporation’s management. The objective of this research is to analyze the corporate governance information disclosed by companies. More specifically our analysis will focus on the nature of the information disclosed, the medium for disclosure, voluntary disclosure and some of the determinants of disclosure. We focused on...
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