The role of corporate governance in economic development: A theoretical study

Abstract

The aim of this study was to investigate the importance of corporate governance and its role in economic reform, due to the increasing interest in the concept of governance, so lots of institutions keen to study the topic such as the International Monetary Fund and the Organization for Economic Cooperation and Development, where this study was to present and analyze the concept and the importance of its determinants, the advantages and objectives of governance and its impact on economic development. The paper showed that despite the importance of corporate governance in Jordan, it is still lack of researches and academics agreement in its definitions is contradictory, where many terms used although the common term and the most widely used in academic and research area is (corporate governance); the statement of the existence of the impact and the importance of the concept of corporate governance for the benefit of individuals, institutions and communities in many economic, legal and social aspects does exist. Also, good corporate governance companies in the form of disclosure of their financial information are working well to reduce the capital of the institutions of the costs and help to attract investment, whether foreign or domestic, and help in reducing institutional corruptions.