The Implementation of Corporate Governance (CG) Principles in Enhancing Investor Confidence

Abstract

This study aims to analyze the implementation of corporate governance in enhancing investor confidence in companies. The research method employed is a literature review using a descriptive qualitative approach, involving the analysis of several journals and secondary data sources relevant to the research topic. The results of the study indicate that the application of Corporate Governance principles such as transparency, accountability, responsibility, independence, and fairness can enhance a company’s credibility and strengthen investor confidence. Companies that implement Corporate Governance effectively tend to have better financial performance and a positive reputation in the market. However, some studies also indicate that the implementation of Corporate Governance does not always have a significant impact if it is merely carried out as a formality without effective implementation.