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The case company that this easy critically analyse is the Nokia Company. Going with the definition of corporate governance, it has been defined by Thomas as the control and direction of companies by ownership, boards, incentives, company law, and other mechanisms”. As an effect, it can be seen as an appropriate control as well as a proper direction that if not applied in firms, the agency problem might occur. Though its, enhancement might not affect economic prospects, but it has a very significant role to play in shaping large companies. Corporate governance in most companies has been a major concern because it is part and parcel of business infrastructure that underlay sound economic performance. Corporate governance in one way or the other correlates very well with better performance operation along with market valuation of companies. According to Capron & Swaminathan (1999), by protecting property rights, the company encourages innovation on top of long run investments in any form of physical capital, direct foreign ventures, not forgetting the intellectual property creation.
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