The importance of corporate governance became very clear in 2002 after a series of corporate meltdowns and frauds caused the loss of billions of dollars in shareholder investments as well thousands of jobs. Many companies filed for bankruptcy, and criminal investigations were initiated against many corporate executives. Enron Corporation, Tyco International, and WorldCom were among the names in headlines on a daily basis. Suddenly, everyone started showing an interest in corporate governance. New legislation was passed by the US Congress. The New York Stock Exchange (NYSE) and NASDAQ introduced new standards demanding that companies improve their corporate governance to maintain their listings.
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