Critical Review of Existing Literature along with an Appraisal, Evaluation, and Justification of the need for Corporate Governance within Organisations Based in the U.A.E.

A thorough examination of the existing body of literature concerning corporate governance in UAE-based organizations is essential for grasping its importance and justification. It is suggested that boards play a vital role in addressing organizational design challenges by mitigating common agency problems faced by companies. Authors propose that studying how boards are structured and their functions offers more insight than viewing them merely through a regulatory lens. The establishment of boards can be traced back to resolving conflicts of interest between shareholders and managers while enhancing monitoring mechanisms within companies. A critical aspect of the board's function is its impact on firm performance, particularly focusing on board composition and size as key determinants affecting outcomes within companies. Independent directors are increasingly prominent globally in corporate governance according to Mittal (2011). Their role on boards is deemed essential in preventing fraud, mismanagement, resource misuse, inequality, and lack of accountability in decision-making processes. The main objective is to maintain fairness, allowing for the execution of responsibilities without any conflicts of interest. Selecting independent directors involves considering specific criteria and adapting to changing circumstances. A board's credibility significantly influences a firm's standing among investors who evaluate organizational strengths and managerial caliber before investing. The participation of reputable individuals from successful companies on a board conveys credibility and appeal for investment opportunities in the market, as proposed by DiMaggio and Powell (1983). They suggest that firms led by esteemed individuals may attract more funding. This research extensively examined various corporate governance issues in the United Arab Emirates by utilizing data from questionnaires and descriptive statistics obtained from secondary sources. It investigated how effective governance could lead to increased shareholder accountability and stronger relationships with involved parties through improved business performance. The study also highlighted the academic and practical significance of its findings, discussing policy implications, recognizing limitations, and suggesting avenues for further research.