Measurement and interpretation of the application of corporate Research Proposal

Measurement and interpretation of the application of corporate governance to increase the competitive advantages of the economic units - Research Proposal Example The corporate governance codes are generated by the companies so as to satisfy the stakeholders, which include employees, investors, customers and suppliers. The research aims at understanding whether the corporate governance codes are effective enough to increase the strength of the company or whether it can be considered as one of the most important strategy to increase its competitive advantage. Therefore, corporate governance codes are defined along with its relevance at different levels of management. It is observed that the impact of effective corporate governance code leads to increase in market share of the company as the customers and investors are satisfied with their overall performance. Hence, the research will aim at establishing the relation between corporate governance and competitive advantage in a broader way. Corporate governance has become one of the active topics of discussion and research among the academic researchers and also a significant subject for initiating a debate. There have been several studies pertaining to corporate governance highlighting its importance and impacts on the performance of companies (Singh and Davidson, 2003). There are also researchers, who have focussed on the mechanism of corporate governance i.e. establishing a relationship between board of directors and stakeholders, transparency in the disclosure and safeguarding the interest of stakeholders. However, these researchers have ignored the importance of practising external corporate governance, which has the ability to prevent interference of the managers that may affect the welfare of the stakeholders (Singh and Davidson, 2003). In this case, it should be stated that both external and internal corporate governance are essential for gaining competitive advantage. The overall effect of the interference is reflected on effectiveness of the governance of the company. Therefore, in order to fill up the gap in the academic researches on this