Good corporate governance structures encourage companies to provide accountability and control. A fundamental reason why corporate governance has moved onto the economic and political agenda worldwide has been the rapid growth in international capital markets. Effective corporate governance enhances access to external financing by firms, leading to greater investment, higher growth and employment. Investors look to place their funds where the standards of disclosure, of timely and accurate financial reporting, and of equal treatment to all stakeholders are met.

Which of the following statements best reflects the logical inference from the passage given above?

Question

Good corporate governance structures encourage companies to provide accountability and control. A fundamental reason why corporate governance has moved onto the economic and political agenda worldwide has been the rapid growth in international capital markets. Effective corporate governance enhances access to external financing by firms, leading to greater investment, higher growth and employment. Investors look to place their funds where the standards of disclosure, of timely and accurate financial reporting, and of equal treatment to all stakeholders are met.

Which of the following statements best reflects the logical inference from the passage given above?

Accepted Answer

Good corporate governance improves the credibility of the firms.

Answer

It is an important agenda of the countries around the world to ensure access to good external financing.

Answer

International capital markets ensure that the firms maintain good corporate governance.

Answer

Good corporate governance paves the way for robust supply chains.

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