Corporate Governance Assignment (Solved)

Running head: CORPORATE GOVERNANCE AND BUSINESS PERFORMANCE
Corporate Governance and Business Performance
Name of the student
Name of the University
Author note

1
CORPORATE GOVERNANCE AND BUSINESS PERFORMANCE
Executive Summary
The primary purpose of this report is to find out how corporate governance has an impact on
business performance. It analyses the corporate management of the professional firm Tan,
Chan and Partners that provides services like statutory audit and taxation planning. It states
how corporate governance helps the organisations to survive in a competitive environment. It
was deduced with the help of research carried out at the firm Tan, Chan and Partners that an
independent board would lead to better performance in an organization and the deviation
between that of voting right along with cash flow right is related in a negative manner to that
of the performance of the firm (Jin and Park 2015).

2
CORPORATE GOVERNANCE AND BUSINESS PERFORMANCE
Table of Contents
1. Introduction............................................................................................................................3
1.1 Background......................................................................................................................3
1.2Purpose of research...........................................................................................................3
1.3 Research Questions..........................................................................................................4
2. Literature Review...................................................................................................................4
2.1 Definition of Corporate Governance................................................................................4
2.2 Good Corporate Governance............................................................................................7
2.3 Benefits............................................................................................................................9
3. Research Method..................................................................................................................11
3.1 Research Philosophy......................................................................................................11
3.2 Research approach.........................................................................................................12
3.3 Research Design.............................................................................................................12
3.4 Case Study Method........................................................................................................13
Conclusion................................................................................................................................15
References:...............................................................................................................................17

3
CORPORATE GOVERNANCE AND BUSINESS PERFORMANCE
1. Introduction
1.1 Background
Corporate Governance comprises of the system of rules and practices by taking recourse to
which a company is controlled. It involves the balancing of interests in relation to the
stakeholders, customers, government along with the community. It provides the framework
that helps in obtaining the objectives of the company. Performance Management refers to
analytical process that enables the management of an organisation to achieve the pre-selected
goals. It involves the consolidation in relation to the management information that is relevant
for the progress of the organization (Tricker and Tricker 2015). It takes into account the
interventions that are made by the managers to improve the future performance of the
employees. Tan, Chan and Partners is one of the leading professional firm in Singapore that
is led by Mr. Tan Chin Ren and they provide professional services like statutory audit,
taxation planning and financial advisory. It is also involved in outsourcing, accounting along
with book keeping. The firm is dedicated to serve the client base and provides human service
programs that are innovative (Al-Janadi, Rahman and Omar 2013). The corporate
governance of the firm aims at serving the customer base and at the same time implement
policies that can help in improving the performance of the employees. This report highlights
the corporate governance in relation to Tan Chan and Partners and how it helps in
augmenting the business performance (Van Grembergen and De Haes 2017).

4
CORPORATE GOVERNANCE AND BUSINESS PERFORMANCE
1.2Purpose of research
The aim of research is to find out about corporate governance, important aspects in relation to
good corporate governance and advantages of good corporate governance (Padachi,
Ramsurrun and Ramen 2017).
1.3 Research Questions
The Research Questions are:
 What is corporate governance?
 What is considered as good corporate governance?
 What are the benefits of good corporate governance?
2. Literature Review
2.1 Definition of Corporate Governance
Corporate governance refers to the system with the help of which the companies are directed.
Board of directors are responsible in a company for governance in relation to the companies.
The main role of shareholders revolves around providing appointment to directors so that
they are satisfied that the structure of government is appropriate (McCahery, Sautner and
Starks 2016). It is the board who sets the strategic aims of the company, provide leadership
so that they can be put into effect and and supervise the management on the arena of
stewardship (Fox, Gilson and Palia 2016).

5
CORPORATE GOVERNANCE AND BUSINESS PERFORMANCE
Figure: Pillars of Corporate Governance
Source: (Mishra and Mohanty 2014)
Corporate Governance is hence related to what the board of an organisation does and values
on which the companies are set. The corporate governance differs from that of operational
management that is carried out on day-to-day basis within the company by that of the
executives who work full-time. Armstrong has opined that good corporate governance helps
to keep the business environment fair and the companies are accountable for the actions that
they have taken. He has opined that weak corporate governance gives rise to waste and
mismanagement (Armstrong et al. 2015). Corporate governance is of crucial importance in
case of joint stock corporations but it is also important in case of cooperatives and family
business (Gow, Shin and Srinivasan 2014). Good corporate governance ensures that business
performance that is sustainable is delivered. Compliance with the principles of Corporate
Governance can help in improving access to the financial markets. It helps the organization in
relation to survival within a competitive environment with the help of mergers along with