A STUDY ON ECONOMICS OF CORPORATE GOVERNANCE AND REGULATION

AUTHOR – ABRARUL ATHIF P.Z, STUDENT AT SCHOOL OF EXCELLENCE IN LAW, THE TAMILNADU DR. AMBEDKAR LAW UNIVERSITY, CHENNAI 600 113.

BEST CITATION – ABRARUL ATHIF P.Z, A STUDY ON ECONOMICS OF CORPORATE GOVERNANCE AND REGULATION, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (6) OF 2025, PG. 728-737, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT

This study investigates the critical interplay between corporate governance and regulation, emphasizing their influence on financial performance and systemic stability. Effective corporate governance establishes accountability and transparency, promoting investor confidence and operational efficiency. In contrast, inadequate governance can precipitate financial scandals and economic instability. Through a thorough analysis, the research identifies that higher quality governance practices are positively correlated with improved financial performance, while attention to stakeholder interests mitigates systemic risks. The findings highlight the importance of robust regulatory frameworks that support governance standards, fostering a sustainable economic environment. By exploringS these dynamics, the study provides insights for businesses, policymakers, and stakeholders, advocating for governance practices that not only enhance financial outcomes but also promote broader economic stability.

Keywords: Corporate Governance, Financial Performance, Stakeholder Interests, Systemic Risks, Economic Stability, Risk Management.