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Essay / Corporate Governance Case Study - 1243
These specifically in three areas: Firstly, a good corporate governance structure is conducive to growth in company performance. Only business development and company performance can thus increase and good corporate governance is a necessary condition for a healthy and competitive company. Second, a good corporate governance structure could reduce the company's operating costs and improve its performance. Companies operate more efficiently, reduce internal coordination costs and monitoring costs, thereby minimizing the total cost of the company as much as possible. Third, a good corporate governance structure is conducive to attracting stable, long-term external capital to drive the company's continued growth. According to the McKinsey report (2002), three-quarters of investors say that when choosing investments, corporate governance is as important as the company's financial indicators. Corporate governance undoubtedly plays a very important role in improving the business.