Corporate Governance Essay

Likewise, the firm also paid its dividends unlike other companies during tis duration. Notably, the company’s success was due to significance and an effective corporate governance through adopting new advertisements and marketing policies as a counter measure to the deteriorating economy. Oconor’s and Ragfferty (2012) state that the major issues faced by organizations is caused by the poor corporate governance. They argue that the difficulty of shareholders in monitoring executives could result to the executives increasing their utility rather than the shareholders wealth. Moreover, when issues face a major issues or barrier, an organization’s shareholders should make change minimize risky investment techniques and maximize less risky techniques. In accordance to a 1930 report, Corporations and Public Investors, experts have observed that firms that had public investors and other shareholders had significant success during this period states.

As the report shows, such corporations made large investments that in return gave back huge amounts of money. The report, like other articles, relates cooperate governance or the interaction between a corporation and other shareholders to have positive impact on the manner in which an organization is managed as well as how operations are conducted. In conclusion, it is evident that there exist enough evidence relating corporate governance with effectiveness of n organization operations and better performance. In Coca Cola’s case, the decision to still make advertisements rather than withdraw due to the depression, it is vivid that corporate governance is an effective management method which aids firms withstand the hard-economic times.  Journal Of Financial & Quantitative Analysis, 47(6), 1187-1214. doi:10. 1017/S0022109012000531.