The influence of the corporate governance laws and their implementations on the financial success of the largest corporations in the development of financial systems; a case analysis of United Kingdom.

Abstract

The concept of corporate governance refers to the system in which companies are controlled and directed. This is the central idea of the Cadbury Report, which was presented in 1992 to help guide the development of corporate code reform1. Corporate governance is often defined as the process of ensuring that the financial transactions of a company are conducted in a manner that assures the company's shareholders of a return on their investment2. This concept is also commonly used in legal discussions about corporate law. The interests of other stakeholders, such as the government and creditors, are typically left to other parts of the law or are only partially included in the corporate governance framework when it is directed and controlled by the company's board. Economists generally use a broader definition of the corporate governance concept to include the various stakeholder groups3. This includes the various aspects of the financial services industry, which is a regulated sector. individual involved in the corporation. Furthermore, the dissertation sheds light on how legislative bodies can enhance these laws to support the corporation's growth and the financial systems' advancement. Legal apprehensions emerge in the UK due to the ever-changing environment of the corporate world. It is safe to say that legal regulations concerning corporate governance law are subject to change and alteration to proceed with the global financial developments and the corporate world to keep markets and businesses secure internationally4. This dissertation scrutinizes the literature to assess the research and work that has already been accomplished to align the corporate governance laws with the modern-day financially advanced corporations, highlighting the legal challenges. The dissertation will contain the actions required to devise financial systems according to the modern world as laws protect consumers from financial deceptions—this aid in retaining unethical financial actions off the markets5. Laws and regulations can be a nuisance when they impede the free market.