Analysis of Corporate Governance by Monks, Robert & Minow, Nell Article

Analysis of Corporate Governance by Monks, Robert & Minow, Nell - Article ExampleAs a result, the managers strengthened the companys governance by ensuring that their imperative efforts focused on their judicial dodges reforms, property rights, and informational freedom as well as evaluating other institutions that were alert for realizing democratic market economies. In addition, Banca Comerciala Romana of Romania experienced successful cases of good unified governance in 2004. due(p) to itemized corporate governance, the institution was able to nettle cheaper debt that made it possible for the bank and its affiliate rating agencies to access lower borrowing costs. Fitch Ratings upgraded both individual ratings and long-term counterparty ratings from C/D and BB- to D and B+ respectively. The company cited the upgrading of the ratings came because of the improvement of corporate governance. They were able to manage the banks risks that direct to changes that brought the bank suffer to European Union standards hence acting as a role model for the other monetary institutions in the region. Furthermore, good corporate governance brings success in companies since it helps facilitate profit-making operations. With good corporate governance, investors go away not just assume whether the company will perform better, but knows it will perform go around due to better corporate governance (Monks & Minow, 63).According to the study, the companies transformed due to affirmed systems of good corporate governance. The refining and developing of standards of corporate governance often followed cases of failures within the subjugated company. For instance, in the late 1990s, on that point were bursts of high technology bubbles associated with telecommunication companies. As a result, there was the development of interests by both brokers and analysts that led to conflicts, underpinning the ability to introduce the principle that would bring advice and analysis into the new system of corporate governance. Enron is one of the companies that matte the heat of failed corporate governance as it pointed the source of its failures to the auditing committee. The auditor and audit committee was an independent ashes thus mistakes involved during corporate governance application led to deficiencies due to failed accounting standards. Enrons system of corporate governance failed due to lack of advice and analysis principles. Another failed case of corporate governance is that of Parmalat. The Parmalat is a group of companies in Italy that deals with dairy food business worldwide. In December 2003, the companys concern team announced the collapse of the company due to lack of funds and entered into the bankruptcy protection program.