African American Entrepreneurs

CHAPTER 2

An Introduction to Corporate Governance

Introduction

Corporate governance has evolved as a central issue for public companies in the aftermath of the 2007–2009 global financial crisis. Global business organizations have recently undergone a series of corporate governance reforms, aimed at improving their governance and financial reports. Effective corporate governance is intended to improve strategic, operational, and financial performance, improve accountability and ensure the achievement of shareholder value creation. Ineffective corporate governance adversely affects a company’s potential, performance, financial reports, and accountability and can pave the way for business failure and financial statement fraud. Corporate governance ...