Good corporate governance requires a sincere effort at self evaluation and improvement on a regular basis. Corporate Governance issues are beginning to be taken more seriously due to strictness by regulators in the face of a series of corporate failures. In these days, to become competitive and to gain corporate excellence, corporate governance is of much importance. Corporate governance has wide ramifications and extends beyond good corporate performance and financial propriety. No code in and of itself can ensure optimal board governance unless and until, there is whole hearted respect and adoption of the code by the concerned executives.. It is ultimately up to the members of the board to aggressively move beyond compliance, especially in the areas of director selection and board evaluation. In short, Corporate Governance holds the key to corporate success. Corporate Excellence and Governance are closely connected concepts and it is felt that in the long run, it is difficult to achieve excellence without good governance
Dear Sanjeev,
I agree with your view. However, corporate excellence and performance also depend on market conditions, the products and services offered by the entity and the general economic environment, in which it operates. I think that this is the reason why there is no clear empirical evidence that independent directors are superior to dependent directors or that the separation of the CEO/Chairman always increases corporate performance.
By the way, if you are interested in a general analysis of corporate governance mechanisms at place against international best practice, please feel free to refer to my research paper: "Case Study: Analysis of Corporate Governance and Management Control at Kendallville Bank": https://www.researchgate.net/publication/306515523_Case_Study_Analysis_of_Corporate_Governance_and_Management_Control_at_Kendallville_Bank
It was published in the International Journal of Applied Economic Studies Vol. 4, Issue 3, pp. 14-20 and thus can be used for referencing.
Paul
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