Exploring the Impacts of Corporate Governance on Business Success.

Corporate governance refers to the relationship between shareholders, management and the board of directors of a corporation and how each of these participants influence the direction and performance of the corporation. The governance of a corporation directly relates to how that company will operate and whether that company will be successful. Corporations that operate using sound, moral corporate governance lay the groundwork for a corporation that has integrity and efficiency in financial markets. When a corporation is being governed by sound practices it leads to better financial decisions. When corporations prosper, it leads to an economy that can grow and provide the United States citizens with a better quality of life as well as

By utilizing regulatory guidelines, a company can compare itself to other corporations in the same market. Capital markets in the United States place importance on credible arrangements made through corporate governance, well understood, and must adhere to commonly accepted business principles. The corporate governance of a corporation must also place importance on responsible and transparent practices that strengthen its impact toward market integrity and economic performance. These practices equate to growth of the company. This growth promotes a stronger economy for the United States by employing more employees, increasing the amount of raw materials purchased and selling more finished products. Well governed corporations also tend to outperform other companies in the same market which attracts investors and shareholders and leads to further financial growth for the company. Expanding corporations drives economic growth developments and aids in future financial resources. Future financing and the quality of investments results in an impact on the growth of the United States economy. The importance of having a good corporate governance structure in place does a lot to ensure a better way of life, more economic growth and overall success for Americans.

Potential stockholders are not known for patience. If an investor is ready to purchase stock in a soft drink company and Coke-a-Cola has no shares to sell, the investor will simply purchase shares of Pepsi. Companies must ensure that they are meeting the demand of investors. Releasing more shares for sale will allow the company to build capital for funding future business