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Why Corporate Governance

Corporate Governance has proved to be of great importance in the last decade. Many corporate scandals like Enron or WorldCom make the investors - whatever their status (institutions, private investors) – now pay particular attention to the corporate governance practices of the listed companies.

A great number of countries published Corporate Governance codes in order to create a framework for the listed companies and organizations like the Organization of Economic Cooperation and Development (OECD) or the World Bank even published their own Corporate Governance codes. Academic and professionals agree that high levels of corporate governance result in provable benefits in companies.

More specifically, a good corporate governance framework has the potential to generate such benefits as:
• Improved business and economic performance. 
• Increasing attractiveness to investors and lenders, which enables faster growth.
• Good impact on share price.
• Lower cost of capital.
• Increasing the company's ability to identify and mitigate risks.
• Reducing the likelihood of fraud.
• Improve the communication within the organization.
• Minimize conflict.
• Increase productivity and efficiency.
• Companies are able to benchmark themselves.
• Increasing market trust. Increasing chance of recruiting and retain high quality directors.