CORPORATE GOVERNANCE PRACTICES AND LEGAL COMPLIANCE IN EMERGING MARKETS

Abstract

This study mainly explores the vital role of corporate governance practices as well as legal compliance in emerging markets, showing their influence on economic stability, investor confidence, and also the long-term corporate sustainability. Emerging economies—characterized by that of rapid growth, institutional gaps, as well as regulatory inconsistencies often faces some of the challenges in implementing effective governance structures. Despite such progress in the context of   policy formulation, a persistent disconnect remains between regulatory frameworks and also the actual corporate practices, often due to weak enforcement, nepotism, and opaque ownership structures. The study further underscores that effective governance in that of the emerging markets requires more than policy alignment—it mainly demands robust enforcement mechanisms, cultural transformation, and also the enhanced institutional capacities. The research mainly draws attention to how the way to corporate scandals in countries like India, Brazil, and South Africa have acted as catalysts for the purpose of reform, yet governance failures persist. These challenges pose some of the risks such as capital flight, erosion of that of the shareholder trust, and economic instability.