Corporate Governance Reporting Essay

Corporate Governance Reporting Essay

Introduction

What is Corporate Governance?

Corporate governance is defined as the rules and tools by which governing a company, today having good corporate governance, according to the inherent characteristics of the company is vital for the proper development of the same, i.e. companies that have good corporate governance are more reliable and attract more investment, companies that do not possess. This is because the effective corporate governance provides greater confidence to investors.

Corporate governance, however, is the system by which companies are directed and controlled. It involves different regulatory and organizational aspects, as far as they are properly implemented in a company or corporation, will allow this to attract and retain financial and human capital, operate efficiently, and thus create economic value for the company and its shareholders. Its structure determines the distribution of rights and responsibilities among different participants in the business, such as the board, managers, shareholders and other parties to maintain an interest in the company (Thorton, 2012, pp. 10-20). It also provides the structure through which the company objectives are set, the means to achieve and how to monitor their performance.

Discussion

The corporate governance of companies has been the subject of several studies national and international, and is widely recognized as an essential factor for firms' access to capital markets. In seeking to define principles that aim to compose the various affected interests laws, rules and regulations governing the internal governance of their companies conceptualization has great scope and can include only the interests of shareholders of the company or, more broadly, interests other than only the interest of the shareholders, but also employees, customers, members of the community in which the company is inserted and others. The study of corporate governance will address the set of instruments public and private, including laws, regulations issued by regulatory agencies, internal regulations of companies and business practices that organize and command the relationship, in a market economy, between controllers and managers of a company on the one hand, and those who invest resources in it by buying values securities issued by it as, among others, the minority shareholders and debenture holders (Shell, 2012, pp. 2-9) .

Importance of Corporate Governance

The term corporate governance was created in the early 1990s in countries developed, more specifically in the United States and Britain, to define the rules governing the relationship within a company shareholder interests controlling shareholders, minority shareholders and managers. The discussion on corporate governance has emerged to overcome the so-called conflict Agency of managers, which is a result of the separation between ownership and management in companies. This conflict of interest can assume different characteristics depending on the ownership structure of companies. Regardless of the question of terminology, corporate governance is understood as the regulation of the administrative structure of the corporation, through (i) setting out the rights and duties of the various shareholders and (ii) the dynamic and organization of powers.

Good Corporate Governance is a concept that is gaining increasing importance in ...