A STUDY ON THE FORMAL INDEPENDENCE AND SUITABILITY OF CORPORATE GOVERNANCE MODELS WORLDWIDE

Abstract

The international corporate governance debate largely builds on the assumption that an ideal and effective board model is one that improves the formal independence of the board of directors especially the independent directors in a decision-making process that ultimately leads to maximize the firm value. The aim of this study is to make a comparative study between the main corporate governance models used globally by scrutinizing strengths and weaknesses for each one, in the sense to determine which one is the most effective model allowing the independence and if it can be adapted to different economic systems, in order to be applied on a scale as large.