An Examination of Corporate Governance and Insider Ownership

Abstract

 Corporate governance aims to align the interests of investors and managers, ensuring that companies are operated for the benefit of all classes of investors. However, in a broader sense, good governance entails running companies in an open and honest manner, fostering overall confidence, enhancing the efficiency of international capital allocation, and ultimately contributing to the nation's wealth and welfare. The significance of corporate governance lies in whether it should prioritize protecting the interests of all stakeholders or solely focus on shareholders. The role and contribution of independent directors are crucial for fostering good governance. Given the current landscape, it is imperative for both the corporate world and civil society to play an active role in facilitating the restructuring and transformation of governance practices.