Adequacy of Corporate Governance Mechanisms as Guide for Investors’ Decision

Abstract

Corporate Governance (CG) mechanisms have become an important topic and are increasing yearly in the world. This paper examined the adequacy of CG mechanisms on investors’ decisions in Libyan firms. The dimensions in this study included compliance with the principles of CG, audit mechanisms, and disclosure and transparency mechanisms. Using a questionnaire to collect data about CG mechanisms for a random sample of 100 investors in the Libyan market. The study found that there was no statistically significant relationship between the CG mechanisms in the firms and investors’ decisions. Finally, the CG mechanisms did not provide the investors with enough clues about a good investment.