The role of regulators and impact of corporate governance on the performance of Australian-listed companies: Legal analysis

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Abstract

This paper addresses the regulatory role and impact of corporate governance on the performance of Australian-listed companies. The research problem concerns understanding how regulatory bodies like the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA), supported by statutes like the Corporations Act 2001 (Act 2001) and the Financial Accountability Regime Act 2023 (FAR Act) influence corporate governance and company performance. The purpose of this research is to explore the correlation between governance practices and firm performance within the Australian legal framework. A doctrinal research methodology was used to examine statutory advancements, the roles of regulatory bodies, and corporate governance principles. The findings indicate that robust governance protocols and stringent regulatory enforcement foster investor trust, protect shareholder rights, and ensure legal compliance (Wilmart, 2007). This paper concludes that a synergistic approach combining self-regulation with statutory oversight is essential for maintaining financial market integrity and enhancing corporate performance (Schaeken Willemaers, 2014). This paper contributes to the legal analysis of regulatory frameworks, corporate governance, and their impact on the stability and performance of Australian-listed companies, fostering a competitive and trustworthy market environment.

Keywords: Corporate Governance, Listed Company, Firm Performance, Corporate Law, Investor Confidence, Misconduct, Financial Accountability Regime

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G38, K22, M14

Received: 10.03.2024
Accepted: 25.11.2024
Published online: 29.11.2024

How to cite this paper: Almeajel, B. M. (2024). The role of regulators and impact of corporate governance on the performance of Australian-listed companies: Legal analysis. Corporate Law & Governance Review, 6(4), 31–42. https://doi.org/10.22495/clgrv6i4p3