The Role of Corporate Governance in Developing Countries: An Overview

Corporate governance refers to the system by which corporation are directed and controlled the governance structure specifies the distribution of rights and responsibilities among different participants in corporations such as board of directors, managers, shareholders, auditors& other stakeholders. It is a system of law& sound approaches by which corporations are directed& controlled focusing on internal& external corporate structures with the intention of watching the actions of directors& management. Internal corporate governance controls monitoring by the board of directors, internal control procedures& internal auditors, balance of power, monitoring by banks& other large creditors etc. while external corporate governance controls competitions, debt covenants, government regulations, managerial labour market, media pressure etc. Around the globe, societies have been experiencing tremendous social, political and economic change during the last quarter century. Analysts of these processes of transformation invariably draw upon the notion of globalization. It is not only the extent of globalization and its effects are disputed, however even more controversial is the evaluation of globalization and various changes it has induced, as the existence of a global �anti globalization movement� makes clear.