The Bahraini corporate governance code: Its effect on the corporate sector

The purpose of the Bahraini corporate governance code is to put the principles of best corporate governance practices into place, and to provide protection to the stakeholders of the company and its investors through compliance with those principles. International experience has shown that the results of good corporate governance are enhanced value of the companies, protecting the investors and attracting investments. This paper examines two empirical studies. First, it examines the relation between the corporate governance characteristics including financial expertise of the board, independent members' composition, frequency of the meeting of committee of audit and boards of directors, board size and the quality of the audit. Secondly, the study examines the efficiency of higher-quality auditors and corporate governance characteristics in constraining earnings management.