Dissertation Title: Examination of Financial Crises and Corporate Failures That Affect Suitability of Corporate Governance in the UK
Research Methodology: Mixed Methods Research
Research Design: Cross-sectional Survey Design
Abstract
Corporate governance as a governing body managing long-term sustainability and the success of companies is essential. This study aims to investigate the relationship between financial crises and corporate collapses, as well as the likely manner in which corporate governance could be improved in the UK. The effectiveness of a mixed-methods approach, where qualitative and quantitative research data collected from 30 participants who are UK employees of UK companies were surveyed, was used to provide a comprehensive picture and understanding of the research objectives. The results supported the finding of a strong association between unreasonable financial performance and governance gap, as executives resorted to steering clear of ethical guidelines and ineffective supervisory processes to achieve fast targets. The analysis found several serious problems, including a lack of an independent board and diverse directors, interest conflict, unclear risk management policy, ineffective procedures and internal control systems, and limited or indecisive disclosure and transparency frameworks. This study emphasised the necessity to increase board independence and diversity, improve the integrity and maturity of the risk management processes, strengthen internal and external communications, and promote ethicality in the top management and a solid corporate culture based on integrity and accountability.
Keywords: financial crisis, corporate governance, UK companies