Corporate Governance: Banking Sector and Economic Development

Corporate governance is concerned as the most important topic to be discussed by financial entities and economic institutions in developed and transition economic countries during the last decade especially several financial crisis took places around the world especially, the ninetieth was full of crises and scandals that highlighted the low quality of monitoring and related weak accounting system beside the poor experience and transparency. These crises and scandals made many shareholders and citizens to lose their wealth and due to that shareholders and citizens look for corporations applying corporate governance. Besides that, developed economic countries employ governance mechanisms aggressively in order to increase the investment possibilities in their corporations and territories. Overall, corporate governance has its role in the economic reformation and economic development.JEL Classification: M4, M2, M1