Corporate governance plays a major role in macroeconomic stability; provide the appropriate environment for
economic growth as well as society welfare, therefore international institutions give major attention and concerns
to this issue at the level of macro and micro aspects, because of the importance of corporate governance at both
the country and the corporate levels.Corporate Governance is “a set of relationships between a company’s
management, its board, its shareholders, and other stakeholders. Corporate governance also provides the structure
through which the objectives of the company are set, and the means of attaining those objectives and monitoring
performance are determined. Good corporate governance should provide proper incentives for the board and
management to pursue objectives that are in the interests of the company and shareholders and should facilitate
effective monitoring, thereby encouraging firms to use resources more efficiently.” (OECD Principles of
Corporate Governance, 1999).