The Role of Corporate Governance in Fostering Investors’ Confidence
The dynamics of corporate governance and investor confidence vary by jurisdiction, and this is because it takes its root from the economic realities within which these governance principles are applied, and like a typical cause-and-effect relationship, the enhancement of corporate governance frameworks ultimately boosts investor confidence and vice versa. Investor confidence refers to investors’ willingness to engage in investment opportunities and associated intermediation channels available to them based on their perception of risk and return. It connotes optimism and trust in the system, which is built over time from economic stability.
October 9, 2025