Rules Based and Principles Based Approaches Finance Essay
Firms mainly adapt to weaker environment by adopting voluntary corporate governance measures. A study on a number of firms within the U.S. indicated that the more firms adopt voluntary corporate governance mechanisms, the higher their valuation (including profitability and sales growth) and the lower their cost of capital. The function of a code of corporate governance is to enhance the general quality of corporate governance practice and assist effective, entrepreneurial and prudent management that can yield the long-term success of […]