Abstract
As good corporate governance is about ethical and proper business practices in all of the firm’s activities to improve investors’ confidence (Yong, 2009), business players are convinced that increasing a firm’s value is the ultimate objective of effective governance. There are many dimensions of effective governance, ranging from its effectiveness in generating the required rates of return for investors to ensuring that managers do not misuse investors’ funds (Kaen, 2005). However, the effectiveness of corporate governance cannot be fully understood without the knowledge of the factors that determine corporate governance structure and ultimately influence the effectiveness of corporate governance.
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Notes
- 1.
The Sarbanes-Oxley Act was enacted in 2002 in response to the public company and accounting scandals in the USA. It tightened the regulations for board, management, and public accounting firms which include enhanced regulation with regards to auditor’s independence, corporate governance, internal control assessment, and financial disclosure. Although it was enacted in the USA, subsequently some countries such as Japan, India, and Australia have also enacted similar strict regulation.
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Ghofar, A., Islam, S.M.N. (2015). Introduction. In: Corporate Governance and Contingency Theory. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-10996-1_1
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