CORPORATE GOVERNANCE AND FINANCIAL MARKETS IN EUROPEAN

Corporate governance plays a critical role in shaping the performance and stability of financial markets. Corporate governance, a crucial component of organizational success and market stability, has garnered significant attention in European financial markets. In Europe, the diverse regulatory frameworks and corporate governance models offer a unique landscape for examining the interplay between governance practices and market outcomes. This dissertation investigates the impact of corporate governance on financial markets across Europe, focusing on key areas such as board structure, shareholder rights, executive compensation, and transparency. This research highlights how effective governance can enhance market efficiency, investor confidence, and overall market stability through a comprehensive literature review, regulatory analysis, and empirical studies. Empirical analysis forms a cornerstone of this dissertation, utilizing quantitative and qualitative data to evaluate the correlation between corporate governance standards and market performance. The findings reveal that robust governance frameworks are positively associated with market efficiency, investor confidence, and overall market stability. Conversely, governance failures often precipitate financial crises, underscoring the critical need for effective oversight and regulation. By comparing governance practices and market performance across different European countries, this study provides valuable insights into best practices and areas for improvement. The findings underscore the importance of robust governance frameworks in fostering resilient financial markets and offer practical recommendations for policymakers and corporate leaders.