The Rami Fouad Makhzoumi Initiative in Corporate Governance and the Capital Markets Authority organized a panel at the Suliman S. Olayan School of Business on April 23, 2019 that gathered experts on the topics of corporate governance and capital markets including academics, bankers and regulators. Rania Uwayddah Mardini, lecturer of accounting at OSB, served as moderator for the event.
As highlighted by various speakers during the discussions, declining oil revenues have led to a greater need for corporate governance and the need to understand and implement sufficient corporate controls. Companies that continue developing their corporate governance will attract the necessary investment to flourish regionally and globally.
“Globally there are $209 trillion US dollars under management as of the end of 2018," said Yasser Akkaoui, Managing Director at News Media and Chairman of Capital Concept. “All countries are competing for a share of this capital, and the only way current investors will invest in a company is if it adopts good corporate governance."
Dr. Salim Chahine, one of the panelists and OSB professor of finance stated, “given the low level of the investor protection rights index in Lebanon, it is critical to improve the overall institutional framework and enforce the regulatory system to attract more investors and secure a better allocation of capital, which ultimately benefits SMEs and growing companies."
“Good governance enhances a company's access to capital markets and financing options that are not offered by traditional bank finance," summarized panelist Uwayddah Mardini. “In a country such as Lebanon, where access to finance is a key constraint, corporate governance practices can enhance private sector performance and economic growth."