An Integrated Framework of Good Corporate Governance in the Egyptian Stock Exchange

Abstract

The importance of implementing good governance practices cannot be understated when it comes to the success of institutions, the national economy, and the political landscape. Building a strong foundation of good governance within the Egyptian stock exchange is crucial. This article aims to present a detailed framework of good governance mechanisms, such as enhancing governance structures, following regulations, being transparent, upholding shareholder rights, ensuring board effectiveness, managing risks, maintaining internal controls, and practicing ethical behavior. By incorporating this comprehensive framework, the overall governance system within the Egyptian Stock Exchange will see enhancements, resulting in greater transparency, accountability, and market efficiency. Ultimately, this will bolster investor trust and encourage more foreign investments in Egypt's economy. The strategies proposed in this article align with both local and international standards, stressing the importance of accountability. Emphasis is placed on independence, transparency, and safeguarding shareholders' interests to promote fair profit distribution and increase shareholder well-being. The board's role in corporate governance is emphasized, highlighting its duties in strategy formulation, risk assessment, and compliance with legal and ethical guidelines. The board plays a crucial role in promoting transparency and accountability within the Egyptian Stock Exchange, thus contributing to societal advancement. This all-encompassing framework acts as a roadmap for investors, regulators, and market participants to cultivate a just and efficient capital market environment in Egypt.