Corporate Governance: Achieving Good Corporate Governance in order to Deal with the Contagion Effects of Financial Crisis

The impact of justified corporate governance changes against exchange rate exposure in North Cyprus

“…However, is it sufficient to have greater shareholders' protection on its own in place to deal with the complexities of financial markets? A matter that has been discussed in two studies, Avcın (2018Avcın ( , 2019 is that it is more important to establish the right firm-based corporate governance mechanism prior to reforming capital market provisions for the creation of better leadership effectiveness and financial innovations and to deal with the complexities of stock market volatility, so-called contagion. Both studies stressed the validity of eight elements of corporate governance as complementary that help create a governance system to provide right and consistent provisions in line with laws to fight against stock market volatility during and after a crisis.…”

“…Furthermore, the study highlights the importance of the complementarity of corporate legality and corporate culture elements' provisions and corroborates corporate governance to a system that help organisations to establish financial value and social value (greatest happiness) for the whole society (Avcın & Balcıo glu, 2017a). The elements of the constructed comprehensive model of modern corporate governance framework incorporates the necessary core elements that generate better internal and external governance behaviour that help manage negative impacts of external factors and problems (Avcın, 2018(Avcın, , 2019 whether is direct or indirect will help create social value and financial value for the society. Similar study for example Youssef and Diab (2021) stated that good governance raises happiness and allows controlling anti-corruption that leads to social and economic stability than being voiced and accountable.…”

“…Furthermore, for example (Avcın, 2018;Avcın & Balcıoglu, 2017b), improvements in the provisions of the elements will add value to corporate governance performance and lead to the creation of better leadership effectiveness and financial innovation at firm level. Moreover, corporate governance incorporates these core elements into organisational structures, leading an organisation to a good corporate power that helps reduce the impact of financial market contagion during and after the crisis (Avcın, 2019). Previous studies, for example (Avcın, 2018(Avcın, , 2019Avcın & Balcıoglu, 2017b), based on a more comprehensive model of corporate governance, illustrated that necessary improvements implemented in corporate market culture and corporate legality elements provisions and enforcement in the overall legal framework of the capital market had increased the overall mean corporate governance score of non-financial firms in North Cyprus.…”

“…Moreover, corporate governance incorporates these core elements into organisational structures, leading an organisation to a good corporate power that helps reduce the impact of financial market contagion during and after the crisis (Avcın, 2019). Previous studies, for example (Avcın, 2018(Avcın, , 2019Avcın & Balcıoglu, 2017b), based on a more comprehensive model of corporate governance, illustrated that necessary improvements implemented in corporate market culture and corporate legality elements provisions and enforcement in the overall legal framework of the capital market had increased the overall mean corporate governance score of non-financial firms in North Cyprus. Furthermore, the implicit implementation of a revised system of corporate behaviour was the need to recognise that the model's key elements were consistent with the cultural and legality G15 and G17 indices, which in turn were likely to lead to efficiency in corporate behaviour that met the principles laid down in the Sarbanes-Oxley Act (SOX, 2002) and the Financial Reporting Council (The UK Financial Reporting Council, 2014).…”

“…This study makes it important that, despite the implementation of legally required (mandatory) management reforms of the Sarbanes‐Oxley Act of 2002 and the principles set by the Financial Reporting Council of 2014, the elements that make up the rightful corporate governance provisions are a research gap to see better performing companies in the world. Therefore, the research gap is determined based on a more comprehensive model of modern corporate governance framework that incorporates the necessary core elements that generate better internal and external governance behaviour that help manage negative impacts of external factors and problems (Avcın, 2018, 2019; Gillan, 2006, p. 383). Moreover, in line with the implementation of the reforms of the Sarbanes Oxley Act of 2002 and The UK Financial Reporting Council (2014) principles, the study framing indicates that further improvements are in need of corporate legality and corporate culture elements' provisions help establish the rightful firm based corporate governance mechanism.…”