Question

In general, what would you recommend to improve corporate governance in the US in general? More regulation from the government or let the markets fix it (via shareholder activism, proper compensation models etc.)?

Please answer in a few sentences. Thank you :)

Answer 1

Corporate governance is a major issue in world of business. In my opinion, corporate governance is driven with 'integrity', and a simple definition of 'integrity' is doing right things, when no one is watching. Therefore, corporate people have to be self aware, any government regulations can just set rules but ultimate implementation of such rules and real benefits from the same can only be derived, when there is effective self control. This self control can be achieved through free market, pressure of peers and high competition will eventually make people on board to be more ethical and loyal towards their duties. Therefore, market fix is the way through.