Corporate Strategy and Governance

This study explores the concept of corporate governance and its issues, with a focus on financial statement transparency in healthcare. It examines the case of NMC healthcare's corporate governance failure and its impact on the market. The study also highlights the importance of implementing effective corporate governance systems in healthcare organizations.

CORPORATE STRATEGY
AND GOVERNANCE

Abstract
This study will show the main concept of corporate governance and issues associated with it. The
major issue as well as problem which organization has faced from past few years is financial
statement transparency.NMC healthcare faced the corporate governance failure where the great
issue was reported in the accounting system. In the following year, the 4 senior executives were
being suspended for the improper disclosure of the financial statements. Further, it will also
show importance of implementing corporate governance system in healthcare as it allows
managers in managing risk and performance as well.

Table of Contents
Abstract............................................................................................................................................2
Table of Contents.............................................................................................................................3
INTRODUCTION...........................................................................................................................4
Chapter 2: Literature Review...........................................................................................................5
Concept of corporate governance................................................................................................5
Role of corporate governance within organizations....................................................................6
Importance of financial statement transparency in corporate governance..................................9
Conclusion.................................................................................................................................11
Gantt Chart.................................................................................................................................11
CHAPTER 3..................................................................................................................................12
Research Methodology..............................................................................................................12
CHAPTER 4: Findings and Analysis............................................................................................14
CONCLUSION..............................................................................................................................34
CHAPTER 5 RECOMMENDATIONS & ACTION PLAN.........................................................34
REFERENCES....................................................................................................................................30

INTRODUCTION
Corporate governance is basically the well-through system of practices, rules as well as
processes that directs the organizations and thus controls them. The problem of corporate
governance has become one of the major concern across all the organizations and thus have
affected their functioning. It is generally the way in which an organization is controlled and
governed. In short, corporate governance is mainly the mixture of various laws and rules through
which businesses and their organizations are regulated.
NMC healthcare is one of the leading and well-known healthcare chain and distribution business
which was established by 1974 by B.R.Shetty and headquartered in Abu Dhabi, United Arab
Emirates(Adiputra, Siregar and Wardhani, 2017). This is the second largesthealthcare
organization which has market share of around 17.5% and thus have a great profit ratio. The
issue of corporate governance has always been the major problem in NMC healthcare which has
affected its overall operation and market position. In December 2019, NMC healthcare shocked
the market by the announcement which acknowledges their profits for last six months were $153
million lower than the company announced months earlier. This has been one of the massive
failures of overall auditing process at this company. This eventually affected the market position
of NMC healthcare to a high extent and in addition, also impacted their stakeholders. Actually
the suspension of 4 senior executive directors of NMC healthcare was majorly followed by
scandal of overstating profits of company by around $153mand later on revealed that company
experienced profit of nearly $322m. The main purpose for overstating the profits within
foretasted profit was to entice the shareholders as well as increase the investment as well as
funds to retailer. Due to this failure of the corporate governance as well as miscommunication
issues, a large number of people within company were being suspended who were engaged
within this accounting fraud. The stakeholders blamed the company and said that NMC
healthcare should have a tight policy as well as procedures that ensure their accounting is
appropriate and correct. Despite the company’s external auditors who are responsible for
checking that everything is in line and correct, NMC healthcare faced a huge brunt in its
corporate governance that eventually led to the decline of their position in market.
1.1 Background of the Study

Transparency in financial statement means statements which are user friendly and clear,
everything in such statements are properly disclosed and includes facts which can be easily
understood (Ghoorah and et.al., 2018). The objective of the financial statement is that it should
be interesting and easily understood for the people who are not having any specific knowledge of
accounting and financial terms. Auditing and cross checking ensures that financial statements are
free of any error and fraud. Transparency in financial statement also includes that all the figures
in the statement are clearly recorded (Gassen and Muhn, 2018). Fraud in financial statement
includes that financial statements are willingly presented with wrong figures and data. Financial
frauds are illegal and unethical because they are not able to present correct information. This
study will discuss transparency in financial statement because of increasing cases of fraud in
financial statement (AL-Massoodi and Dawood, 2019). Contribution that corporate governance
can make in transparency of financial statement and for corporate governance importance of
financial statement will be discussed in the study.
1.2 Problem Statement
The major issue as well as problem which organization has faced from past few years is financial
statement transparency. The corporate governance relates to carrying out the activities of
business according to the desire and needs of stakeholders. It is usually all about balancing the
individual as well as societal goals and economic goals. NMC healthcare PLC is basically known
for the great corporate governance as their core framework and also the company is primarily
known for safety as well as ethics towards environment along with people.
This great failure of the corporate governance in NMC health care resulted in great decline in
their market share to around 11.4% and thus affected their overall stakeholders. Due to this
misapprehension, the confidence and trust of their customer ultimately declined in the company
and in the following year, sale and profit ratio of the company reduced to more than 45% and
this impacted their market position(Filatotchev, Poulsen and Bell, 2019). Along with this, NMC
healthcare also lost their most of the shareholders after this case and the company was later on
alleged to pay a handsome fine of around $613m towards end of year. Along with this, more than
12 investors filed accounting fraud upon NMC healthcare PLC as well as claimed that company
had been misleading them and lying for gaining funds.

1.3 Research Objectives
 To understand the concept of corporate governance
 To analyze the role of corporate governance within organizations
 To explore the issues in corporate governance affecting organizations
 To study the importance of financial statement transparency in corporate governance
Chapter 2: Literature Review
Concept of corporate governance
As per the view of Xia and et.al., 2017Corporate Governance contributes organization in creating
value, this includes entrepreneurial, innovation, development and exploration and provide
accountability and control system of the companies. Corporate governance is system of rules,
practices and processes through which a company is directed and controlled by its board and
management. Corporate governance significantly involves managing and safeguarding the
interest of various stakeholders’. In context of rules and regulations company is governed by
corporate governance but this is more than corporate law. In its practice corporate governance is
a well-laid out system, it leads to building of a legal, commercial and institutional framework
within all functions are performed. Objective of corporate governance is not limited to fulfilling
legal requirements of the company but it also includes commitment of board and its senior
officers in managing the company in transparent manner for ensuring long term value for its
shareholders. Diverse interest group such as employee, owners, managers, investors, business
partners and creditors are termed out to be crucial part to the enterprise. With help of providing
transparency in decision making process the entity can able to ensure success and develops
economic growth. Thus, one of the main issues of corporate governance is to influences their
plan of action and competitiveness. Thus, implementation of corporate governance leads to
create the conflict of interest among the member of the enterprise who is directly conflicts with
the objectives of corporation.
As stated by Habbash, 2016Corporate governance refers to the accountability of the board of
comapnies to all the stakeholders of the corporations, these are shareholders, employees,

customers and society. This also includes giving a corporation a fair, efficient and transparent
administration. Corporate governance of the company also refers to code of conduct; this is
required to abide by the directors along with running the company as per all the corporate
governance. There are various reasons which Wide Spread of Shareholders, in this company has
very large number of shareholders spread all over the nation and even around the world. Through
corporate governance company can ensure well-being of all the shareholders. Corporate Scams
and Scandals is another reason for corporate governance. These days corporate are significantly
facing corporate scams and this is why it is important to have corporate governance.
.
Role of corporate governance within organizations
It is already stated that corporate governance is a system which supports companies in
making an effective decision by managing and directing them. In the context of roles of this
system Alsalim, Amin and Youssef, (2018) stated that this system influences ways as how
companies set and achieve their objectives. It also allows companies in managing as well as
monitoring risks and optimizing performance. It is considered as an effective system because it
consists of several principles, defined responsibilities and policies on which basis, all
stakeholders of companies including healthcare can overcome conflicts of interest and help
companies in accomplishing their goals. In addition, they also stated that corporate governance
system not only allows stakeholder to perform their activities and solve conflict of interest but
also work as like mediator between all stakeholders of company like company management,
board of directors, shareholders etc. By making them able to communicate and interact with each
other’s they shape corporation’s performance. It also allows them to deal with determining all
those ways which can make them able to take strategic decision. Taking an effective strategic
decision can be the key of the success of an organization.
On the other hand, in the context of importance of roles of corporate governance
Schijven, Haleblian and Kolev, (2017)said that it changes ownership structure in an effective and
positive manner. One of the main role of developing or using this system in companies is it
prevents companies against scams and frauds. In this context, it can be said that scams and frauds
are increasing day by day which can become the reason of poor image and poor productivity of
organizations. There are several ways by which hackers can scam and loot public funds in stock

markets and banks. But with the help of corporate governance, companies can prevent
themselves against all these scams and problems. One of the other main roles of corporate
governance is it increases investor trust which is importance and can be helpful for companies. In
this context, it can be said that investors consider corporate governance one of the important
factors as like financial performance when they evaluate companies for making decision of
investment. So, it can be said that by making an effective and appropriate use of corporate
governance system, companies can increase shares, revenues and trust of investors.
For supporting this view, Ahmad and et.al., (2018) interpreted that corporate governance
system allows companies to increase their valuation and add value in customers’ services. They
manage accountability as well as improve operational transparency which also make companies
able to fulfill expectations of investors. When investors and stakeholders feel satisfied than they
also support companies in accomplishing their goals. This satisfaction and accomplished goals
increase value of companies and make them able to take competitive advantages. With the ability
of an effective communication, board of companies can select, evaluate as well as compensate
the CEO and oversees the talent programs of the company, especially those related to executive
leadership and potential successors to the CEO.
Issues in corporate governance which affects organizations
There are several authors who stated that corporate governance is one of the main
effective systems which can help them out in accomplishing their goals. It also has several
benefits but on the flip side, it can also be said that corporate governance can create several
problems. There are some risks are associated with this system which can create barriers in the
path of the success of companies Ibrahim and Zulkafli,(2016) stated that accountability issue is
one of the main problems which is associated with this. In this context, it can be said that from
the top level executives to low-level tier employees, each level of corporation requires to report
and be accountable to another as like system of balances. Without proper accountability, each
division of actions of corporation may endanger success of companies and may cause
stakeholders to lose interest or willingness of investing in companies. When investors lose their
interest of investing in an organization then it may affect their reputation and number of shares
and sales.

Whereas, Zhao, Chen and Xiong,(2016) stated that ethics violation is other main risk or
problem which is associated with this corporate governance system. In this context, they stated in
a detailed manner that all members of board of directors have keen desire and ethical duty to take
decision based on the interest of stakeholders of making investment. Corporation or healthcare
has another ethical right or duty to protect social welfare of community for which and in which
they operate. Some ethical duties include: reducing pollution and eschewing manufacturing in
countries. But poor establishment of corporate governance can exploit all these ethical rights and
duties of organization. It can directly affect image of the company in a negative manner.
Other main issue which is associated with this corporate governance is conflict of
interest. In this context, it can be said that corporate governance is the system which has ability
to allow companies to avoid conflict of interest but on the other hand, it may create problem
when an officer of an organization has financial interest only. This interest may create situation
of conflict with objectives of corporation. So, it can be said that different interest of members of
board or authorized member of corporation can create conflict of interest. It can directly affect
trust of shareholders and can make corporation vulnerable. In addition,Muriuki, Cheruiyot and
Komen, (2017) also be said that for making an organization or corporation profitable and
successful, it is important for them to report their accurate profit and losses to those who evaluate
profit and loss report while making decision of investing money in companies. But, overinflating
profits and continuous decreasing losses can be harmful or can give some serious danger to
company. Because this overinflating profits and decreased losses put pressure on investors and
they suspect on companies. It can make relationship of shareholders and company’s worse. In
this type of situation, investors think that they are making a false decision of investment under
false pretenses. So, it can be said that a lack of transparency is one of the main problem which
can even expose the company to fines from regulatory agency.
Importance of financial statement transparency in corporate governance
Financial reporting plays an important role in companies including NMC healthcare as it
allows companies in solving agency conflicts among firm’s directors, managers as well as capital
providers. It can only be happening by corporate governance which is an effective set of
contracts, help in aligning different committee and managers’ interest with interest of
shareholders. So, from this example, it can be said that financial reporting is vital or key of the

success of any organization. In this context of Bidabad, Amirostovar and Sherafati,(2017)stated
that for making financial statement transparency it is important for organizations to understand
difference between formal and informal contracting relationship because by understandings
them, companies can identify whether financial transparency in corporate governance is good or
bad. In this context, it is also stated that both formal and informal plays a vital role as it shapes
an organization’s overall governance structure as well as information environment. Formal
contracts refer written employment agreement which is often quite narrow in the scope and also
difficult to analyze it. On the other hand, informal contracts govern multi period relations and
allow all parties of contract to interact and engage in a board set of activities.
In the context of role of corporate governance in enhancing financial transparency as well
as facilitate production of information stated that this system separates position of CEO and
board chair of healthcare or other institutions who are mainly responsible for accuracy of
financial reporting like accurate data of profit and loss. In this process, board chair support CEO
in increasing transparency by providing information of incentives which may help preventing
large losses to stakeholders. After separating roles and position of CEO and board chair, this
corporate governance system, identifies successors in order to replace key members of executive
management team of companies, who facilitate smooth as well as effective transition and flow of
credible information. After that, third and main important role of corporate governance
framework for health care Banks and other institutions is, it makes an incentive structure
effective and able which rewards manager in an efficient manner. By getting effective rewards,
managers share both types of information like good and bad in order to make stakeholders aware
about the actual position of company in the market. After that managers of corporation also
cooperate with regulators for effective establishment. Other main and important role of corporate
governance structure is it has an ability of peer assessment which is important for making
organization successful and knowing the actual position. This strong peer assessment, board
evaluation and ability to share both good and bad information with regulators facilitate the
replacement of ineffective directors. When ineffective directors are replaced than companies are
more likely to achieve all their objectives and making their business successful. The last main
role of this framework is it allows creditors in playing their role more prominently and
effectively in demanding accurate information. This demand of accurate information allows them
to improve efficiency of their own monitoring of performance.

On the other hand, Siringo-Ringo and et.al., (2020) stated that financial statement and
transparency in it is one of the important for any sort of business. Corporate transparency is all
about the degree to which organizations including healthcare’s actions are observable by
outsiders or shareholders. It is also stated that financial transparency is one of the key steps to
corporate governance and makes sure that management of organization will never be engaged in
unethical or improper behavior. This system makes able to all managers in providing information
related to their profits and losses in an accurate manner. This transparency in financial reporting
makes investors, creditors as well as market participants able to evaluate financial condition of
companies in both positive and in a negative manner. This evaluation helps them out in making
the best and effective decision of investment. So, it can be said that corporate governance system
and financial reporting transparency increases confidence in the fairness. Financial transparency
to corporate governance is also important because it makes managers of corporation able to
evaluate and measure effectiveness of management and taking immediate effective actions when
required.
Conclusion
From the literature review, it is concluded that corporate governance have several
features which allows managers of healthcare organization in accomplishing their goals. It has
been also summarized that making this implementation successful, company needs to analyze it
is an effective manner as there are several problems occur in the path of the success. With the
help of effective strategies, all problems like financial transparency and other can be solved out.
Gantt Chart
Gantt chart
Activity 1-
3day
s
3-5
days
6-8
days 9-
13days
14-8
days
19-21
days
22-24
days 25-27
days
27-28
days

Producing Aim
and objectives
Conducting
literature
review
Research
methodologies
drafting
Designing of
questionnaire
Data gathering
Data
interpretation
Discussion of
results
Final
submission of
project

CHAPTER 3
Research Methodology
Research methodology termed out as plan of action that outlines the way in which
research procedures can be undertaken in the effective manner. This aids to investigate the
method that can be helpful to undertake the study in detailed aspect. Therefore, it is inclusive of
techniques that have data collection and other approaches and this can be helpful to gain specific
result of the selected topic of research study. However, research methodologies are termed out in
following context such as-:
3.1 Research Type: This is termed out as the procedure that is inclusive of the overall plan of
action that assists to integrate the different components of the study. Thus, this technique can be
helpful to gather the information in coherent and in logical manner. Therefore, this is method
that aids to constitute the blue print for the collection, measurement and analysis of data.
Therefore, the research design is inclusive of techniques such as descriptive, cluster, exploratory
etc. In order to determine the impact of corporate governance over the working of the enterprise,
the researcher has used the descriptive approach so that depth information about the topic can be
collected and analyzed.
3.2 Research type- This is termed out as the careful selection and consideration that related with
particular concern which aids to identify the problem with use of scientific techniques to
concluded the research in systematic manner. Thus, main purpose of this is to collect the
research for the enhancement of knowledge about the particular area to research. Hence, it can be
called out as to gather the depth information about the research topic. However, research type
broadly categorized in two aspects such as qualitative and quantitative. In order to carry out the
present research, the researcher has used quantitative approach to identify the impact of
corporate governance over the enterprise. Hence, information has been gathered by adopting
close ended questionnaire survey.
3.3 Data collection- This is termed out as concept in which data can be process, gather and
information can be measured out effectively. It is termed out as the procedure that assist to
collect, measure and analyze accurate insights for research with the use of standard validated
techniques. However, the data collection is termed out as the technique that is divided into two

categories such as primary and secondary method of collecting data. In this, primary technique
can be useful to gather the first hand information and which was collected through close ended
questionnaire. On the other hand, secondary method can be useful to collect the information with
use of sources, books, journal articles etc. To carry out the implication of corporate governance
on the working of enterprise the researcher has used both technique that is primary as well
secondary.
3.4 Sampling Method and Sample Size -It is termed out as the technique that assists to filtering
the information in corrective manner. With use of sampling method, the statistical analysis can
be analyzed with use of predetermined number of observation that can be taken from larger
population. However, sampling is classified in method such as probability, simple random and
non-probability approach. In order to determine the impact of corporate governance over
working enterprise the researcher has used probabilistic technique so that better evaluation can
be conducted. In the present research, researcher has used sample random technique with use of
probabilistic technique with use of sample size of 30 respondents as managers.
Ethical consideration- The research must be based on true value of researcher. No information
needs to be disclosed before undertaking the permission of all participants. Thus, research needs
to be ethically approved.
Research limitation- The limitations of the research study needs to be based on those
characteristics that relates with design or methodology that impacted or influenced the
application or interpretation of the results of your study.
CHAPTER 4: Findings and Analysis
1. What is your gender.
 Male
 Female
2. What is your age group?
 25-30
 30-35
3. Does NMC healthcare have a written code of corporate governance?
 Yes
 No
4. 2. Do you think that corporate governance system can bring desired level of fairness
and accountability in NHS healthcare?

 Yes
 No
5. 3. According to you, which area is being affected the most in a positive manner by
adopting corporate governance practice?
 Increase shareholder’s value
 Increase accountability and transparency
 Increase internal control exercise and health of people
6. 4. How would you rate the degree of transparency in NMC healthcare?
 Excellent
 Good
 Fair
 Bad
7. 5. Does NMC healthcare have a whistle blower policy?
 Yes
 NO
8. 6. Which committee of NMC board is effective and is responsible for success of
corporate governance?
 Remuneration Committee
 Audit committee
 Clinical governance committee
 Nomination committee
9. 7. Does effective corporate governance practices can aid to NMC board to ensure
success and economic growth.
 Yes
 No
 May be
10. 8. Do you think implementation of corporate governance can aid to lowers down the
capital cost?
 Yes
 No
 May be
11. 9. What are the positive aspects of implementing corporate governance?
 Maintain investors’ confidence.
 Positive impact on share price
 Enhancement in economic growth
 Lowers down capital cost
12. 10. Is corporate governance aids to enhance transparency in working enterprise.
 Yes
 No
 May be
13. 11. Do you think poor corporate governance can weaken the potential of the enterprise?
 Yes
 No
 May be
14. 12. What is the main role and responsibility of clinical governance committee?
 Promote safety and excellence

 Manage risks
 protecting health and safety of all employee
15. Are the following issues in corporate governance affects the working of enterprise?
 Diverse interest group
 Ineffective decision making
 Conflict of interest
Theme 1: The most of the participants were male.
What is your gender. Frequency %
Male 20 66.67%
Female 10 33.33%
Total 30 100.00%
Male Female
0
5
10
15
20
25
20
10 Frequency
Interpretation- Based on the above demographic presentation it has been concluded that most
of the participants were male. Out of 30, 20 were male and 10 were female.

Theme 2:
What is your age group Frequency
25-30 18
30-35 12
Total 30
Interpretation: From the above it can be said that the most of people were from the age group
of 25-30. Out of 30 employees, 12 employees were from the age group of 30-35.
Theme 3. NMC healthcare have a written code of corporate governance?
Participants Answers
22 Yes
8 No

Interpretation: In the context of written code of corporate governance, it is interpreted from the
above graph that out of 30 employees of NMC healthcare, 22 or majority of employees said that
NMC chain of healthcare have written code of corporate governance. In addition, they also said
that it helps them out in regulating risks as well as reducing threats of corruption and poor
quality of healthcare services. On the other hand, 8 employees stated that yet, NMC does not
have written code of corporate governance and it is one of the main reasons of its scandal fraud
as well as collapse into administration after failure of embattled group. They tried to secure
support from its creditors to oppose the move and it got failed to secure their alignment.
Theme 4. Corporate governance system can bring desired level of fairness and accountability in
NHS healthcare?
Participants Answers
25 Yes
5 No

Interpretation: From the above data, it is interpreted that out of 30 employees of NMC
healthcare, 25 employees strongly believe that corporate governance system can bring desired as
well as effective level of fairnessin healthcare They also said that establishment of this system
can also make them able to improve their productivity and performance. They also said that one
of the main pillars of successful corporate governance is accountability and by accountability
and fairness, they can accomplish their goals and improve health of patients. On the other hand,
5 employees stated that only corporate governance cannot make healthcare able to bring fairness
as well as accountability.

Theme 5. which area is being affected the most in a positive manner by adopting corporate
governance practice?
Participants Answers
7 Increase shareholder’s value
13 Increase accountability and transparency
10 Increase internal control exercise and health of
people

Interpretation: From the above graph it can be said that corporate governance bring changes in
several areas of an organization and improvements in all these areas, make companies able to
accomplish their goals and make their business successful. It is interpreted that out of 30
employees 7 and least number of employees believe that corporate governance canincrease
shareholder’s value which is important for them as it can allow them to improve their image in
the market. Whereas, 13 or majority of employees believe that corporate governance system
affect accountability and transparency area as it increase them which allow investors and
managers in making best decision regarding organization’s successful. 10 and rest of employees
said that corporate governance framework allows companies in increasing internal control
exercise as well as improving health of people by improving quality or services.
Theme 6. Rate the degree of transparency in NMC healthcare
Participants Answers
11 Excellent
5 Good
8 Fair
6 Poor

Interpretation: From the above data, it can be said that transparency in financial reporting and
other areas play an important role. In this context, 11 employees of NMC stated that corporate
governance is one of the effective systems which has made their corporation able to increase
transparency and that is why they rated transparency degree as excellent. They also said in this
context that it has made them able to improve health and quality of services and increasing
number of investors. On the other hand, 5employees rated this framework in regards to
transparency as good. Whereas, 8 employees rated it fair and said it is bringing several positive
changes in their company. There were 6 employees of NMC who stated that this framework is
not effective as it does not allow them to increase transparency so they rated it poor.
Theme 7. NMC healthcare have a whistle blower policy
Participants Answers
27 Yes
3 No

Interpretation: From the above graph, it is interpreted that out of 30 employees of NMC
healthcare, majority or 27 employees said that their company have an effective whistle blower
policy. In addition, they also said that this policy gives all shareholders liberty or freedom to
raise concern against any type of illegal and unethical activity. With the help of this policy all
employees are given right to report any concern or grievance by authorized channel which is
being operated by the audit committee. On the other hand, 3 employees said that their company
does not have a whistle blower policy and due to this they have to face several problems such as
leakage of important information etc.
Theme 8. Which committee of NMC board is effective and is responsible for success of
corporate governance?
Participants Answers
5 Remuneration committee
7 Audit committee
14 Clinical governance
4 Nomination committee

Interpretation: From the above data, it can be said that NMC board has established several
committees which help them out in accomplishing their goals by playing their roles and
responsibilities. In the context of effectiveness of committees, 5 employees of the company said
that according to them remuneration committee play an important role.On the flip side, 14
employees stated that clinical governance committee is one of the main players which is also
mainly responsible for the success of corporate governance. They said that this committee, it
reviews clinical performance indicators quarterly in order to gain assurance and reviewing
compliance. 7 employees believe that audit committee is the main and effective player. 4 and the
least of employees said that nomination committee also plays an important role in the success of
corporate governance.

Theme 9: Effective corporate governance practices in the enterprise helps to ensure success and
build economic growth.
Does effective corporate
governance practices can aid to
NMC board to ensure success
and economic growth. Frequency %
Yes 22 73.33%
No 6 20.00%
May be 2 6.67%
Total 30 100.00%

Interpretation- Based on the above graph it can be concluded that effective governance
practices help to bring out success and also boost the economic growth. Additionally,
improvements in corporate governance leads to higher growth of GDP, productivity and
enhanced the ratio of investment to GDP. Therefore, the total number of respondents are 30. In
this, 22 stated yes, 6 stated no and 2 are not sure of it. Corporate governance highly affects the
rate of innovation, resource allocation and economic growth.
Theme 10: The implementation of corporate governance helps to lowers down the capital cost.
Do you think implementation of
corporate governance can aid to
lowers down the capital cost? Frequency %
Yes 24 80.00%
No 3 10.00%
Yes No May be
0
5
10
15
20
25
22
6
2
Frequency

May be 3 10.00%
Total 30 100.00%
24
3
3
Yes
No
May be

Interpretation- Based on the above graph this can be stated that corporate governance can be
termed out as one of effective tool as this leads to lower down the cost and cost of debt capital.
However, corporate governance aids to prevent the enterprise from behaving badly. Thus, the
total numbers of respondents are 30. In this, 24 stated yes, 3 said no and 3 are not sure of it.
However, this can be stated that effective corporate governance aids to serves better and this
allows monitoring the managers and controlling shareholder’s activities effectively.

Theme 11: This aids to maintain investor confident and leads to improve corporate governance
facilities.
What are the positive aspect of
implementing corporate
governance? Frequency %
Maintain investors’ confidence. 8 26.67%
Positive impact on share price 7 23.33%
Enhancement in economic
growth 8 26.67%
Lowers down capital cost 7 23.33%
Total 30 100.00%
8
7 8
7
Maintain investors’ confidence.
Positive impact on share price
Enhancement in economic
growth
Lowers down capital cost

Interpretation- Based on above graph it can be concluded that corporate governance is one of
effective tool that helps to enhance trust of investor and improve working facilities. Thus, total
number of respondents are 30. In this, 8 stated this aids to maintain investor confidence, 7 said it
leads to have positive impact on share price, 8 stated this increases economic growth and 7
responded it lowers down the cost of capital.
Theme 12: Corporate governance helps to enhance the transparency within business enterprise.
Is corporate governance aids to
enhance transparency in
working enterprise. Frequency %
Yes 23 76.67%
No 5 16.67%
May be 2 6.67%
Total 30 100.00%
Yes
No
May be
0 5 10 15 20 25
23
5
2
Frequency

Interpretation- Based on the above graph it can be concluded that Corporate governance
transparency can be affected by the decision of administrative, business transaction and
charitable work that knows that how to do charitable work. With use of execution of corporate
governance, the entity can be to enhance its transparency. Thus, the total number of the
respondents is 30. In this, 23 stated yeas, 5 stated no and 2 are not sure of it. Hence, the chosen
entity strives to enhance its corporate value in effective and stable manner. It leads to earn the
society trust with help of full-filling the social responsibilities.
Theme 13: Corporate governance can weaken the potential growth of the enterprise.
Do you think poor corporate
governance can weaken the
potential of the enterprise? Frequency %
Yes 22 73.33%
No 6 20.00%
May be 2 6.67%
Total 30 100.00%
Yes No May be
0
5
10
15
20
25 22
6
2
Frequency

Interpretation- From the above graphical presentation this can be stated that ineffective
implementation of corporate governance can weaken the working of the enterprise. Thus, it leads
to have failure results that can ruin the brand image of entity within market. Thus, total number
of respondents are 30. In this. 22 stated yes, 6 said no and 2 are not sure of it.
Theme 14: Promoting health and safety is the main responsibility of clinical governance
committee.
12. What is the main role and responsibility of clinical
governance committee? Frequency %
Promote safety and excellence 5 16.67%
Manage risks 5 16.67%
protecting health and safety of all employee 15 50.00%
Ensure effective working conditions 5 16.67%
Total 30 100.00%

Promote safety and excellence
Manage risks
protecting health and safety of all employee
Ensure effective working conditions
0 2 4 6 8 10 12 14 16
5
5
15
5
Frequecy
Interpretation: In this open ended question all participants and target people are being given
equal and fair chance to share their views and tell more about roles and responsibilities of one of
the most effective committee clinical governance. Some people said that all members of clinical
committee promote safety and excellence in healthcare which is one of the main key of the
success and aim of NMC healthcare. Other some people stated that this committee, with the help
of corporate governance identify, prioritize and manage risks which arise from clinical care on a
continuing basis. Managing risks can also allow them to improve effectiveness of performance
and make the path of the success easy. Other and rest of selected participants or sample said that
one of the main roles of clinical governance committee is protecting health and safety of all
employees and other patients by making effective use of resource via evidence based clinical
practice.
Theme 15: Yes, the following issues affects the working of or enterprise.
Are the following issues in corporate governance
affects the working of enterprise? Frequency %

Diverse interest group 12 40.00%
Ineffective decision making 8 26.67%
Conflict of interest 10 33.33%
Total 30 100.00%
12
8
10
Diverse interest group
Ineffective decision making
Conflict of interest
Interpretation- From the analysis this can be interpreted that the company has diverse interest
group such as employee, owners, managers, investors, business partners and creditors are termed
out to be crucial part to the enterprise. With help of providing transparency in decision making
process the entity can able to ensure success and develops economic growth. Thus, one of the
main issue of corporate governance is to influences their plan of action and competitiveness.
Thus, implementation of corporate governance leads to create the conflict of interest among the
member of the enterprise who is directly conflicts with the objectives of corporation.

CONCLUSION
From the above study it has been summarized that corporate governance played a vital
role for companies specially for banking sector and healthcare sectors. It makes them able to
perform their functions in a manner by which they can make investors able and influence to
make investment decision in their companies. This study has also shown importance of research
methodology which makes researcher able to collect information related to their topic and allow
them to solve the main research problems. By gathering informationfrom primary and secondary
research, they accomplish the main goals for which this whole research is being developed by
them. From this study, it has also been concluded that corporate governance has several abilities
such as it makes members of committee to perform their role effectively, maintaining accuracy,
reviewing risk, analyzing financial report in an accurate manner. All these roles played by
members of committee have direct impact on investment and decision making process which is
the main key of their success. Further, it has also shown that corporate governance not only have
benefits and affect company’s performance in a positive manner but also it can create several
problems. There are several problems are being associated with this framework and one of the
main problem which has been addressed is transparency and conflict of interest. Transparency,
ethical violation issues can make situation of the company worse and it can also make their
image poor in the eyes of their shareholders and people.
CHAPTER 5 RECOMMENDATIONS & ACTION PLAN
On the basis of above study it is stated that transparency is the main problem in NMC
healthcare and employees also believe that it is the main reason by which NMC fails to win
creditors’ backing (NMC Expects Administration as it Fails to Win Creditors’ Backing, 2020).
So, in this context, it can be recommended that company should focus on maintaining accuracy
and transparency in its financial reporting and others areas. For more improvement, it can also
focus on training and development program. By providing training to all members of different
committee, it can make them able to perform their roles in an effective manner. With the help of
an effective training, they all can increase their knowledge and skill and can also know different
ways of performing roles and functions. It can also be suggested to NMC healthcare that it
should focus on appointing restructuring experts.

One of the main aims of appointing restructuring experts is to improve image which it has lost
due to failure of getting back to all creditors and increase share in the market. One of the main
purposes of this company is to improve health of people and patients for which it works and it
can only be possible when it implements corporate governance in an effective manner. After
implementing this system, it is important to evaluate its own performance and making financial
reports annually or quarterly in an accurate manner. Gaining trust of shareholders can also help it
out in making image again and it can also be possible when it recruits skilled workforce who
have potential and abilities to use corporate governance framework in an effective manner. With
the help of an effective action plan which can help it out in analyzing areas of weaknesses and
selecting best way of solving them, it can make they able to accomplish all pre-determined goals.
It can also be suggested on the basis of findings and results that NMC should focus on self-
analysis of their performance. With the help of feedback, it can evaluate its performance and
their actual situation. This analysis can make it able to use appropriate action and solving their
problems. It should also focus on incentive and rewards area. When employees and managers get
rewards than it motivates them and motivate employees are more likely to retain with the
company and cooperate them in accomplishing their goals. So, it can be said that by following all
these suggestions in an effective manner, NMC can improve its image and can take advantages
of corporate governance.

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ONLINE:
NMC Expects Administration as it Fails to Win Creditors’ Backing. 2020. [ONLINE] Available
through: <https://www.ft.com/content/61cced42-cbdc-4339-9768-f341eca3ee42>.