Corporate governance strives to give the firm strategic direction for organising and supervising a company. Under the heading of corporate governance, matters of (legal and factual) integration of the business in its natural environment (such as in specific are the capital market) are furthermore addressed. (Baliga 1996, p. 41)
In the capital markets significant external financing cost can be generated through information asymmetry via outside investors and inside managers. It limits the finance growth opportunities of the firms. The availability of the information that is valid and specific can be termed as corporate transparency. Trust is also related to the critical issues of transparency (Jackson & Moerke 2005, p.351–61).