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Deepening the Corporate Governance Culture in Ghana: The Role of Stakeholders

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  • Type of document: PEF Newsletter, PEF Magazine

corporate governance is the set of arrangements through which organizations account to their stakeholders. Good corporate governance requires accountability to a broad stakeholder-group including shareholders, creditors, employees, customers, suppliers, and all categories of persons who come into contact with a company's day-to-day activities. This perspective on corporate governance is applicable to all kinds of firms irrespective of ownership structure,and requires organizations to balance interests of all stakeholders. Good corporate governance supports and sustains economic growth by promoting the efficient use of resources and by creating conditions   that attract both domestic and foreign investment.

In its Global Investor Pinion Survey (July 2002), McKinney & company found that more than 73% of global institutional investors were willing to pay a premium for the shares of a well-governed company over one considered poorly governed but with a comparable financial record.  In emerging markets where corporate governance is perceived to be poor, investors are prepared to pay a premium as high as 30% compared to

12-14% for North America, where corporate governance is perceived not to be so poor. Consequences of poor corporate governance include loss of lifetime savings by individuals, weakening of investor confidence in the capital market, collapse of companies, and lack of long-term productivity and growth of the entire economy.Good corporate governance brings the values of democracy to the corporate level. 


Read 3549 times Last modified on Wednesday, 17 August 2016 16:23
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