Influences on corporate governance
Influences on corporate governance

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Influences on corporate governance

2 The drivers of corporate governance rules

2.1 Introduction

In this section we are going to review the different needs that drive the creation of corporate governance frameworks. The contingent model of regulation applies to financial reporting: the idea that equilibrium in regulation exists, but is broken by some intrusive event, often a financial scandal. This leads to a search for a revision of the rules, and a new equilibrium is worked out. This is very much a pattern that drives change in corporate governance.


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