In the early 20th century, the rise of monopolies forced governments to pass antitrust laws in order to maintain a free market. Since then, the scale of public intervention in business has increased exponentially. In recent times, fraud and moral hazard have drawn attention to corporate governance legislation. Unfortunately, ethics cannot be legislated and government intervention only harms companies that are behaving properly without doing anything to mitigate new forms of unethical financial engineering. As new financial instruments are developed, globalization increases, and unprecedented macroeconomic environments emerge (e.g. extremely low interest rates), opportunities for unethical behavior may arise. But when investors suffer losses due to poor corporate governance, their collective demand forces companies to make a change or perish, and as a result, companies design effective controls to avoid problems in the future . Government regulations are reactive: they attempt to resolve problems that have already arisen. However, market forces create solutions to problems long before government regulations are put in place. After the fall in banking values ​​due to the 2007/2008 financial crisis, risk management committees were established and boards of directors were reorganized to include directors with experience in "finance and banking". investment ". Because self-regulation aims to maximize shareholder value, it tends to be financially efficient. Quite apart from simple bureaucratic overload, government regulations take a public and stakeholder-centric approach, and the costs to businesses are therefore much higher than they would be under self-regulation. For example, General Motors recently announced that today's states - 12.2 percent of the $25.2 trillion in assets under management tracked by Thomson Reuters Nelson - are involved in a socialization strategy. responsible and sustainable investment. » Although the transgressions of a tiny percentage of business leaders have harmed investors and the economy, market forces have largely succeeded in guiding good corporate governance. When our markets were formed, certain regulations were necessary to create their basic functionality framework – but in today's era where government uses its own methods to control corporate governance, this comes at the expense of both businesses and investors. Works CitedBruno, V., & Claessens, S. (2010). Corporate governance and regulation: can there be too much. Journal of Financial Intermediation, 461-482.McKinsey & Company. (2002). Global Investor Opinion Survey: Key Findings.