On many occasions, poor corporate governance has led to corporate failures.

Khaled Isam Al-Qatamin Emmanuel V Murray

This is a good question Khaled Isam Al-Qatamin and a topical issue. I do not know of any research on the relationship between the two, but there are lots of case studies in this area.

I guess in answering this question, the layer of the onion that we need to peel is what we mean by corporate governance and do we mean by corporate failure. To get the discussion going, I am attaching a link to two (2) HBR articles on the issue:-

I am more interested, for starters, to explore "The Board's Missing Link."

Very nice question.I think there is unidirectional causality between failure and governance. In other words bad corporate governance causes corporate failure. But, studies should be conducted to find this causality.

About auditing, which kind of auditing do you refer to?There many types of audit such as financial,organizational,institutional,etc.You have to specify.But all those kind can identify some aspects of corporate governance such internal controle system,risk management,strategy ,decision making,objective defining,etc.

Governance in most societies is formalism

Oversights on governance will cause corporate failure. And corporate failure cannot result without the knowledge of governance.

Corporate Governance came into existence in view of major corporate scandals and corporate failures as the general public became increasingly frustrated or fed up with the wayward behaviour of some directors which resulted in fall of some big companies such as Blue Arrow, Maxwell Corporation and several banks.. The first well known Corporate Governance Committee was instituted in United Kingdom in 1991 led by Sir Cadbury which resulted in Cadbury Report 1992 which is highly regarded as the pioneer of Corporate Governance. On the other hand, Corporate Failure Models have been in existence for long time as early as 1968 such as the Z-Score Model (Predicting Corporate Failure) using Quantitative Techniques and later Agenti Model using Qualitative Techniques. Corporate Governance became more important in the dawn of sudden collapse of Enron (Major Energy Giant) in USA in 2001 and Worldcom in USA in 2002. The Sarbanese-Oxley Act was enacted in 2002 in USA and covers a lot of Corporate Governance Principles in USA.

It depends on which kind of failures you mean, is that financial failure or manufacturing failure and etc. I believe that the effect of corporate governance is highly dependent on what would be your dependent variable.

This question should be answered through exploring the board of directors practices and its performance.

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The correlation between a company's failure and corporate governance can be masked by unreliable information and public relations policies. In the long run, however, the correlation between a company's failure and corporate governance is usually strong.

Greetings,

Dariusz Prokopowicz

Please go to this link :

https://www.wisegeek.com/what-is-the-relationship-between-business-ethics-and-corporate-governance.htm

Hi! There is a close link between these two aspects. Have a look at the following articles for more ideas:

Parker, S., Peters, G. F., & Turetsky, H. F. (2002). Corporate governance and corporate failure: a survival analysis. Corporate Governance: The international journal of business in society.

Lakshan, A. M. I., & Wijekoon, W. M. H. N. (2012). Corporate governance and corporate failure. Procedia Economics and Finance, 2, 191-198.

Appiah, K. O. (2013). Corporate governance and corporate failure: evidence from listed UK firms (Doctoral dissertation, Loughborough University).