Governance in the Joint Stock Companies at Saudi Arabia

Corporate Governance is a right thinking guidance for the companies, particularly, in moderating the conflict of interests among the investors, companies’ administration, and other stakeholders. Besides, it works on boosting the confidence of the investors, and the market value of companies’ shares, assisting them to receive the international and domestic finance especially after the financial turmoil, which originated in the global markets in the mid-1990s, the bankruptcy of some companies in Southeast Asia and Latin America in 2001 in addition to the bankruptcy of some American companies in Southeast Asia and Latin America in 2001 as a result of the fraud, manipulation of the balance sheets, and non-application of international accounting standards. Moreover, the proper governance protects the rights of the company, investors, the employees, beneficiaries as in the economic crisis in 2008, which has been triggered as a result of the accumulation of a severe governance weaknesses and unacceptable abuses in corporate governance.