The most accurate statement about corporate governance is that corporate scandals have been a powerful driver for the development of corporate governance codes.
* Corporate scandals (C): High-profile corporate scandals, such as Enron and WorldCom, have exposed significant governance failures and have led to the development and strengthening of corporate governance codes around the world. These scandals highlight the need for robust governance frameworks to protect shareholders and ensure corporate accountability.
* Lack of official corporate governance code (A): Most markets have developed official corporate governance codes to provide guidelines for good corporate practices.
* Sarbanes-Oxley Act (B): The Sarbanes-Oxley Act, enacted in 2002 in the United States, was not the world's first formal corporate governance code, but it was one of the most influential, particularly in response to corporate scandals.
References:
* CFA ESG Investing Principles
* Historical development of corporate governance codes