The role of corporate governance in disclosure financial statements to enhance competitive advantage

Abstract

Economic units face many challenges as a result of the change in the contemporary environment, represented by the great openness in trade and investment, intense competition and globalization. Therefore, institutional governance is one of the most important issues for economic and professional units, as it includes the framework in setting goals of the economic unit and protecting the interests of shareholders. And other stakeholders, maximizing the performance of the economic unit, reducing risks and improving access to capital markets, and one of its reasons is the lack of full and comprehensive disclosure of financial statements in financial markets and the lack of application of the principles. Accounting that achieves disclosure, transparency and lack of confidence in financial statements in financial markets. Therefore it is necessary to pay attention to corporate governance and its mechanisms and to disclose financial statements transparently to protect the interests of shareholders and other joint stock companies and enhance the efficiency of financial markets by enhancing the competitive advantage between markets.