Question

Why does the presence of a capitalist system affect a nation’s perspective on corporate governance?

Answer 1

Capitalist system is where new ideas and thoughts are encouraged with no stringent rules and regulations where everyone who has an idea can go forward and start a business.

How this system affect on corporate governance

Natural resources, human manpower job creation job security ware in the hands of capitalist who are in business line

Any decision that needs to be taken by government will have to go through the process of business structure which is of very wide spread and thus it is complex for a government to take decisions in such a situation.

Where job creation is in the hands of capitalist it's a great three for an economy, it is where poverty GDP and per capita income is dependent on.

All this factors combinely affect on corporate governance.