The implication of the companies’ performance is important to consider from
a macroeconomic point of view. The success or failure of the company has an impact
not only to the employee of the company but it is also to the shareholders and
community as well. For instance, in 2013 there were approximately 20,000 publicly
held corporations in US trading in various markets, generating a market capitalisation
of over $ 20 trillion. Stock market capitalisation of United States corporations
represents approximately 115 percent of Gross Domestic Product”. Assuming if
these corporations go bankrupt without improper decision making process or without
good check and balance, then it would hardly imagine the implication of it.