Primary navigation:

QFINANCE Quick Links
QFINANCE Reference

Home > QFINANCE Dictionary > Definition of corporate governance

Definition of

corporate governance

Corporate Governance

system for running firm the system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies. The stockholders' role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in place. The responsibilities of the board include setting the company's strategic goals, providing the leadership to put them into effect, supervising the management of the business, and reporting to the stockholders on their stewardship. The board's actions are subject to laws, regulations, and the wishes of the stockholders in the general meeting.

Recommended Further Reading (Term count)
  • How Internal Auditing Can Help with a Company’s Fraud Issues
    by Gail Harden
    Regulatory oversight is increasing, as are penalties. A passive attitude in an organization toward oversight and the topic of fraud, antifraud programs, and controls would be a strong indicator of a significant deficiency in its system of internal controls.Economic factors can increase the occurrence of fraudulent practices. When the economy is in a downturn the risk of fraud increases due to personal financial pressures, the stagnation of...
  • Internal Auditing and Doing Business in Foreign Countries
    As companies increasingly expand abroad, chief audit executives face a host of new and unexpected challenges. Operating abroad in unfamiliar political environments exposes businesses to new types of risks and complexities, which can threaten business performance. These risks can range from differences in regulatory and compliance practices to those that violate domestic law, such as the US Foreign Corrupt Practices Act 1977, as well as political...
  • Managing Activist Investors and Fund Managers
    by Leslie L. Kossoff
    Whether or not your organization has been a target in the past for activist investors and fund managers, you have to plan on it becoming a fact of life from now on—things have changed.It used to be that only a few organizations were hit by activist investor activity. From the almost prophetic, and beautifully constructed, Benjamin Graham move on Northern Pipeline in 1951, to Carl Icahn’s dramatic moves on Yahoo! during the “Microhoo”...
  • Defining Corporate Governance: Its Aims, Goals, and Responsibilities
    This checklist explains what the phrase “corporate governance” encompasses.

Definitions of ’corporate governance’ and meaning of ’corporate governance’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’corporate governance’ and other financial terms with our online QFINANCE Financial Dictionary.

Back to top