Strong Corporate Governance Boosts Firm Value and Investor Trust Worldwide
The article explores how corporate governance affects a company's value and behavior. It looks at the costs and benefits of implementing governance mechanisms, the impact of breaking financial agreements, and the relationship between governance and corporate social responsibility. Research shows that good governance leads to higher firm value and better performance, as it improves monitoring, transparency, and trust between owners and managers. Companies adopting US governance practices tend to perform better, suggesting a positive impact on their overall performance.