DESCRIPTIVE EVIDENCE OF CORPORATE GOVERNANCE & OECD PRINCIPLES FOR COMPLIANCE WITH JORDANIAN COMPANIES
Keywords:
Corporate governance, OECD principles, Jordanian companies.Abstract
The OECD principles of Corporate Governance (CG) are the most important public policy mechanisms that assist regulators to efficiently evaluate and improve the institutional, regulatory and legal framework for sound CG. Consequently, the primary objective of this study is to assess the level of practical compliance with the OECD principle of CG by the Jordanian companies. The paper is designed using the conceptual approach. The information used for the study is obtained from the library search. The study found that some of the OECD principles are practically implemented such as (i) framework of good CG; (ii) the rights of shareholders; (iii) role of stakeholders; and (iv) disclosure and transparency. The principle of equitable treatment of shareholders and the responsibility of the board are also used in practice. However, it is suggested that the Jordanian companies should strictly apply the remaining principles because they recognise the importance of every aspect of organizational stakeholders and their due rights for the achievement of the primary goal of the organization. The study will provide some insight to investors, firms, stock exchanges, government and others that play a role in developing good GC.
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