The Role of Corporate Governance in Modern Businesses

The exploration of corporate governance has evolved significantly over recent decades, gaining prominence as a vital area of study in the context of modern business practices. The literature reveals a complex landscape characterized by varying definitions and interpretations of corporate governance, as well as its implications for firm performance and stakeholder relations. (A. Elhabib et al., 2014) highlight the lack of consensus on a singular definition of corporate governance, which has led to calls for improvement in governance mechanisms. They identify five key factors driving the need for enhanced corporate governance, notably the increase in firm complexity and the separation of ownership from management, which can exacerbate agency conflicts.