SHELL ETHICAL CORPORATE GOVERNANCE IMPLICATIONS Coursework

SHELL ETHICAL CORPORATE GOVERNANCE IMPLICATIONS - Coursework Example cial markets are the key to explaining the large influx of foreign capital into emerging markets as well as its rapid departure during times of crisis. Transparency in global financial markets prevents foreign investor overreactions due to unclear market signals, quicker and smaller adjustments by investors in responding to new information, advance planning by local firms in supervising investment flows, and greater market efficiency. Global investors also demand greater market transparency, hoping that the greater flow of information regarding the actions of governments and firms in emerging market economies will allow them to better manage their investments. While few governments, banks, or private firms disagree the imporant need for an increased level of transparency, transparency still proves to be an elusive goal. These international financial institutions rely on their multilateral mandates for surveillance, financial data collection, and data diffusion. In addition, these institutions also have to contend with a whole panorama of transnational, multinational, domestic, and international persons regarding the preparation of financial information and the dissemination of the financial information. Transparency in busines is an excellent global governance strategy. Transparency needs to standardize all of the regulatory processes through which financial information is prepared for the global investor. The regulators also need to examine the specific procedures that govern the diffusion of this data. The financial information that helps investor decision encompass credit ratings, bond ratings, and measures of interest rate and exchange rate risk. The data is useful when the processes through which this information is produced are standardized across markets. The data must also highly accessible to the global markets. (Shuster, 2000) Banking can be a hugely profitable endeavor. In addition, the synergies between commercial banking and investment banks merge: