Corporate Governance : Moving from Compliance to Competitive Advantage

Corporate governance rating is positively associated with financial performance. Corporate governance has come to be viewed as a differentiator among firms as good governance practices provide a sustainable competitive advantage. Paper emphasizes benefits of good corporate governance and also lists finding of prior studies. Paper also discusses principal drivers for an increased demand for good corporate governance. An increasing amount of empirical evidence shows that good corporate governance contributes to competitiveness and long term value creation. This paper highlights various meanings and definitions of corporate governance and recommended standards of corporate governance