Corporate governance in the GCC

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By doing this, it also provides the structure, through which the company objectives are set and the means of attaining those objectives and monitoring performance (Baydoun, Ryan and Willett, n.d., p. 2). The practice of financial reporting and auditing standards are considered as an integral part of good governance. In the literature review, it has been argued that the managers need to think beyond the belief that mismanagement in the microeconomics policies lead to poor corporate governance, and then only they will succeed in designing a holistic and systematic corporate governance model. Many of the researchers have emphasized on the creation of situation specific corporate governance structure, which has created difficulties in finding one universal definition of corporate governance. Some other sets of researcher have emphasized on the relational aspect between the managers and the shareholders. Some researchers have revealed that corporate governance is different from management, where management only looks at successful running of the organization but corporate governance looks at conducting the operations of the organization in a proper and transparent manner. Different tools like controlling and accountability can be incorporated by the business leaders in the management, for monitoring the activities of the agent and motivating them, so that they can act in accordance with the expectations of the external and internal stakeholders. The organizations should accept certain set of corporate values otherwise, there might be some possibilities that the employees might act according to their own interest. Moreover, for creating an environment of knowledge sharing, the board members must create a knowledge sharing environment inside the organization in order to fill up the scope for implementing corporate governance. Various research scholars have stated various principles for corporate governance, which can be summarized as an obligation for the organization to maximize the value of the shareholders. The literature review has discussed about various theories proposed by the research scholars, like the inherent property right theory, stewardship theory, principal-agent model (finance model) and myopic market model etc that discussed about the major issues related to the shareholder-oriented corporate governance. The literature review has also evaluated the principles and enactment that are followed by different countries and have summarized them to indentify the major areas of Corporate Governance, such as board constitution, board remuneration, auditor’s remuneration and responsibilities, transparency in disclosures, stakeholder and shareholder information and influence of ownership structure. However, it has been emphasized that there is no such singular model of corporate governance that is followed by every country. Due to difference in time zone and orientation, there is difference in corporate governance policies of different countries. In this context, there are several issues related to the corporate governance structure that have been identified. Then empirical research studies related to corporate governance has been analyzed and found that in most of the countries benefits and