SHAREHOLDERS DIRECTIVE AND ITS IMPACT ON CORPORATE GOVERNANCE: CORPORATE GOVERNANCE AND FIRM PERFORMANCE

This thesis examines the relationship between corporate governance frameworks and shareholder engagement, with a particular focus on the evolving role of shareholder directives in fostering accountability, transparency, and sustainable firm performance. By addressing foundational principles of governance and shareholder rights, it highlights the mechanisms that align managerial decision-making with shareholder interests, emphasizing their broader economic implications. The research explores how shareholder activism, facilitated through mechanisms such as voting, proposals, and institutional engagement, serves as a vital tool for monitoring corporate governance. It further evaluates the link between shareholder protections and capital market development, illustrating how robust governance structures contribute to firm stability and long-term profitability. By integrating theoretical insights, empirical analysis, and case studies of governance failures, the study underscores the necessity of adaptable and effective frameworks to mitigate risks and enhance resilience. This thesis provides valuable insights for policymakers, corporate leaders, and academics aiming to refine governance practices and align them with evolving market demands and stakeholder expectations.