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Contribution to Book
Corporate Governance: A Journey from Compliance to Competitive Advantage
Enhancing Enterprise Competitiveness (Strategy, Operations and Finance) (2007)
  • Pankaj M Madhani
Abstract

Corporate governance stands for responsible business management geared towards long-term value creation. Views of corporate governance are shifting from mere obligation and compliance with laws and listing standards, to a business imperative for many firms. Corporate governance significantly influences the firm performance. Good corporate governance is a key driver of sustainable corporate growth and long term value creation. Corporate governance is a priority for firms because it presents opportunities to manage risks and add value. Corporate governance has come to be viewed as a differentiator among firms as good governance practices provide a sustainable competitive advantage. This paper highlights various meanings and definitions of corporate governance and recommended standards of corporate governance. Paper mainly focuses on OECD principles of corporate governance. It also explains purpose and objective of corporate governance. This paper also discusses principal drivers for an increased demand for good corporate governance. Paper also underlines risk associated with poor corporate governance practices. An increasing amount of empirical evidence shows that good corporate governance contributes to competitiveness and long term value creation. Corporate governance rating is positively associated with financial performance measures like Tobin’s Q. Paper emphasizes benefits of good corporate governance and also lists finding of prior studies.

Keywords
  • Corporate Governance,
  • Competitive Advantages
Publication Date
2007
Editor
R. K. Jain, P. Gupta, U. Dhar
Publisher
Allied Publishers
ISBN
9788184241549
Citation Information
Pankaj M Madhani. "Corporate Governance: A Journey from Compliance to Competitive Advantage" New DelhiEnhancing Enterprise Competitiveness (Strategy, Operations and Finance) (2007)
Available at: http://works.bepress.com/madhani/22/