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ISSN 2063-5346
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IMPACT OF FINANCIAL GLOBALISATION ON CORPORATE GOVERNANCE AMONG NON BANKING FINANCIAL INSTITUTIONS

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Dr. R. Rajendran, Shilpa.M
» doi: 10.31838/ecb/2023.12.s2.275

Abstract

Financial Globalization is the flow of Capital in the form of debt, equity, FDI etc between different countries. Financial globalization facilitates different countries to successfully operate their production and utilization of resources through diversification of risks. Financial Globalization impacts economic development of the country and also the investors and Corporates. Corporate Governance plays a major role in financial globalization as it provides more avenues to access capital and value creation for organizations. Designing the development of financial globalization paves the way for advancement in information and communication technologies. It brings in liberalization of financial and capital markets and creates competitive advantage on intermediary services. Financial Globalization has balanced the risks in international capital markets in the form of risks associated with increased borrowing costs in emerging economies. By the impact of Financial Globalization, the risks are mitigated and contributed to financial stability of the enterprise. Corporate Governance is the system of applications by which the companies listed under Banking regulations Act, 1949 and Non Banking Financial Sectors adopt to direct and control the mechanisms of the working system. In Financial Globalization, Corporate Governance applicability plays a dominant role where in the Board of Directors is responsible to manage governance of the company and shareholders, stakeholders also put forward their opinion in appointing the auditors and directors of the company to have an appropriate governance structure in organization. In consolidation Financial Globalization paves the way to develop the countries to adopt better working mechanism and proper consumption volatility. The essence of financial globalization brings in financial diversification to shift income and market risks to world markets and allowing developing countries to manage better in macroeconomic volatility.

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