Efficiency and Sustainability through A Responsible Management of the Enterprise

Abstract

Motivation to investigate the link between corporate governance system and performance of an enterprise can be seen from a dual perspective. Firstly, for the theory of costs’ perspective, managers have an incentive to choose a level of governance to ensure compliance with all regulations to protect the investors. Secondly, should be considered that the best governance practices, such as communication and low vulnerability can makes the investors to demand a lower risk premium and managers to obtain an incentive in order to improve, to a voluntary basis, the efficiency of the company’s governance practices, with low implementation costs.
Keywords: Audit committees, Board of directors, Corporate governance, Internal audit.